Nigerian billionaire businessman and philanthropist, Femi Otedola, has weighed in on the ongoing dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), urging the association to innovate or perish.
Otedola, in a statement issued yesterday, said he felt compelled to speak on the matter given its implications for Nigeria’s energy future and economic stability.
He congratulated Aliko Dangote on the strides made by his $20 billion refinery, describing it as a historic leap towards Nigeria’s energy independence.
“Aliko’s refinery is not the problem. It is the solution. DAPPMAN must stop clinging to outdated privileges and focus on building a new era based on self-sufficiency, transparency, and sustainable value creation,” Otedola said.
Recalling that he founded DAPPMAN 23 years ago to challenge the dominance of major marketers, Otedola said the association’s mission had shifted over time.
While depot ownership was once strategic in addressing inefficiencies and supply gaps, he stressed that the industry has since evolved, rendering the old model obsolete.
“Times have changed. Many of the original players have exited the scene, and those left are holding on to assets that no longer reflect today’s realities.
“I advised some of them as far back as last year to sell their depots as scrap while they still had value,” he said.
Otedola noted that with Nigeria now producing fuel locally through the Dangote Refinery, the era of heavy reliance on imports is over.
He revealed that the country currently has over four million metric tons of storage capacity, most of which lies idle.
He strongly criticised DAPPMAN’s reported demand that the Dangote Refinery subsidise them with ₦1.5 trillion, describing it as unreasonable and detrimental to consumers.
“What DAPPMAN is fighting for today is to preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure. That era is fast disappearing,” Otedola declared.
He debunked the claim that depots create significant employment, noting that most depots employ only a handful of workers, unlike filling stations, which directly engage dozens of staff.
“If anything, DAPPMAN members should focus on expanding last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us,” he advised.
Otedola praised Dangote’s investment in 8,000 brand-new CNG-powered trucks, which will distribute fuel nationwide with reduced pollution and improved reliability.
“More than just producing fuel, Dangote has elevated the entire logistics chain, replacing rickety trucks with modern, eco-friendly vehicles,” he said.
Drawing parallels with the cement industry, Otedola noted that once Nigeria became self-sufficient in cement production, bulk carriers previously used for importation were scrapped.
“The same outcome awaits fuel depots if DAPPMAN fails to adapt,” he warned.
The billionaire also credited President Bola Tinubu for demonstrating the political will to fully deregulate the downstream petroleum sector, a move previous administrations failed to implement.
“This reform has broken the grip of entrenched interests, ending decades of rent-seeking, subsidy fraud, and product diversion.
“It has ushered in transparency, healthy competition, and customer-centric service delivery,” Otedola said.
Highlighting past corruption, Otedola revealed that over ₦2 trillion was siphoned through fraudulent fuel subsidy claims under former President Goodluck Jonathan’s administration.
“I personally warned President Jonathan that he was being misled. The system was built to benefit depot owners, with DAPPMAN members as the primary beneficiaries,” he said.
He linked these fraudulent claims directly to depot licenses, arguing that the previous policy rewarded corruption rather than innovation.
Otedola urged DAPPMAN members to embrace change by restructuring their operations, selling idle depots, or investing in new value chains such as refinery ownership.
“If they truly believe in competition, they can come together and acquire the Port Harcourt Refinery to prove their capability,” he suggested.
Citing the Folawiyo Group as an example of foresight, he commended the company for exiting the depot business early by selling its assets.
“DAPPMAN had its place, but today its relevance is fading. The future belongs to those who innovate and adapt,” Otedola concluded.
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