BY GODWIN OBI
Billionaire businessman, Femi Otedola, has weighed in on the ongoing dispute between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Dangote Refinery, urging depot owners to adapt to industry realities instead of resisting change.
In a statement on Monday, Otedola advised DAPPMAN members to consider restructuring their operations or acquiring the Port Harcourt Refinery if they intend to remain relevant in Nigeria’s downstream oil and gas sector.
“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing,” he said.
Otedola threw his weight behind the Dangote Refinery, arguing that the demand for a ₦1.5 trillion subsidy from Dangote was unjustifiable and would only hurt consumers. He likened Dangote’s entry into the petroleum sector to the transformative role of Amazon in global commerce.
He recalled warning former President Goodluck Jonathan against subsidy exploitation, stressing that depot owners were the primary beneficiaries of a corrupt system that siphoned over ₦2 trillion. According to him, depot operations neither generated significant jobs nor promoted innovation compared to filling stations.
Citing global trends, he explained that depots in cities like Amsterdam and Houston serve export markets, not local consumption. With Nigeria refining locally, he said fuel depots risk becoming obsolete, much like bulk cement carriers did when Nigeria attained local production capacity.
“Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains. If they truly believe in competition, they could even acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not,” he stated.
Otedola commended Aliko Dangote for his “courage” in transforming the downstream sector and praised President Bola Tinubu for deregulating the petroleum market, describing it as a “historic leap” that broke the grip of entrenched interests.
Reflecting on his role as founder of DAPPMAN in 2002, Otedola noted that depot ownership once served a critical supply purpose but had now outlived its relevance.
“Times have changed. Many of the original players have exited, while others cling 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 revealed.
He stressed that with the Dangote Refinery now supplying locally refined fuel, the old model of fuel importation and depot dependence had collapsed.
“We built depots to store our imported diesel because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery fully operational, those gaps no longer exist. We now have domestic production and local supply efficient, reliable, and proudly Nigerian. “Furthermore, we must not fail to recognise the attendant benefits of eliminating the gridlock around the Ibafon , Tincan, and Apapa areas due to the operations of the Dangote Refinery. More than just producing fuel, Aliko has elevated the entire logistics chain.
“He has purchased 8,000 brand new CNG eco-friendly trucks that will distribute across the country with less pollution and fewer breakdowns, unlike the aging, rickety trucks still used by some operators. I know this business intimately. I was king of it and at the peak of it in 2005 (20 years ago) ,
“I was conferred with the life patron of the PTD union by Mr Akinlaja. So, when I say the game has changed, I speak from deep experience,” he said.
Otedola’s interference followed DAPPMAN recently accusing the Dangote Refinery of an attempt to monopolise the downstream sector.
According to them, Dangote’s constant slashing of petrol pump prices was far from patriotism, but a mere business strategy of sidelining other marketers in the business.
At the heart of the controversy is Dangote’s newly purchased 4000 Compressed Natural Gas trucks for direct distribution of petrol to filling stations nationwide.
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2025-09-22