Business magnate Femi Otedola has entered the ongoing conflict between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Dangote Refinery, urging independent marketers to restructure or consider acquiring the Port Harcourt Refinery to remain relevant in the downstream petroleum sector.
In a statement on Monday, Otedola backed Dangote’s operations and criticized resistance to progress in the industry.
Otedola questioned the relevance of DAPPMAN’s traditional business model, which depended on fuel imports, subsidy exploitation, and outdated infrastructure. “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 To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure?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. He emphasized that the removal of Product Fuel Imports (PFIs) from NNPC had rendered the previous depot-based system obsolete, and that Dangote Refinery should not be expected to subsidize outdated structures at the expense of consumers.
He highlighted the disparity between past practices and the present reforms, noting the billions siphoned through depot licenses during previous administrations. “Over ₦2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation; it encouraged rent-seeking and corruption,” Otedola said. He stressed that depots no longer create significant employment, pointing out that a typical depot employs only a handful of staff, whereas a single filling station generates jobs for dozens of Nigerians.
Otedola drew comparisons to global markets, noting that depots in Amsterdam and Houston primarily serve export purposes. “With Nigeria now refining locally, such infrastructure is increasingly unnecessary,” he said, referencing the experience of the cement industry, where bulk importers became redundant after local production began. He suggested that DAPPMAN members could either sell their depots, restructure, or collectively acquire the Port Harcourt Refinery to explore new opportunities.
Praising Dangote and the Tinubu administration, Otedola described the refinery as a transformative project for Nigeria’s energy independence. “Congratulations to my dear brother, Aliko Dangote, on the success achieved so far since the Dangote Refinery commenced operations. It is a historic leap for Nigeria’s energy independence and economic future. But more importantly, credit must go to President Bola Ahmed Tinubu for doing what no other leader before him had the political will to execute—the full deregulation of the downstream petroleum sector,” he said. He also highlighted Dangote’s investment in 4,000 eco-friendly Compressed Natural Gas trucks, which would enhance distribution efficiency and reduce environmental impact, in contrast to aging trucks still used by some marketers.
Otedola’s intervention follows DAPPMAN’s recent allegations that Dangote Refinery’s pricing strategies aim to monopolize the downstream sector. He maintained that the reforms mark a break from past inefficiencies and corruption while urging marketers to embrace the new era of local refining, transparency, and value creation.