Femi Otedola, billionaire businessman, has supported Dangote Petroleum Refinery in its dispute with Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
Gatekeepers News reports that Otedola said that the petrol subsidy regime under former President Goodluck Jonathan was designed to enrich depot owners rather than benefit Nigerians.
In a statement on Monday, Otedola said he had personally warned Jonathan that the subsidy structure was flawed and encouraged corruption. According to him, more than N2 trillion was siphoned through questionable subsidy claims linked to depot licences.
He said, “On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries.”
“Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation; it encouraged rent-seeking and corruption.”
His comments came in response to recent accusations by DAPPMAN that the Dangote Refinery was engaging in market-disruptive practices.
The association alleged that the refinery’s decision to reduce fuel prices was strategically aimed at weakening competition rather than serving patriotic interests.
Countering the claim, Dangote Refinery disclosed that DAPPMAN had allegedly demanded an annual subsidy of N1.5 trillion to enable its members to match the refinery’s gantry prices at their depots.
Otedola dismissed the narrative that fuel depots are significant job creators, stressing that they employ very few people compared to retail filling stations.
He explained, “A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners.”
The business mogul urged depot owners to adapt to changing realities, pointing out that the relevance of depots diminished once Nigeria began refining cement locally, and the same fate now awaits fuel depots.
He said, “Immediately Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired, many sold as scrap. The same outcome awaits fuel depots.”
Otedola warned that if DAPPMAN members fail to restructure or innovate, they risk becoming irrelevant or going bankrupt. He advised, “Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains.”
Otedola further suggested that if DAPPMAN genuinely believed in competition, its members could pool resources to acquire the Port Harcourt refinery and attempt to succeed where Nigerian National Petroleum Company (NNPC) Limited had failed.
