Nigerian billionaire businessman, Femi Otedola, has intervened in the ongoing fuel supply dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), advising the association to “innovate or perish.”
In a statement addressing current issues in the downstream oil and gas sector, Otedola congratulated Aliko Dangote on the progress made since his refinery began operations, describing it as a historic milestone for Nigeria’s energy independence and economic future. He warned that entrenched cabals resisting reform would only delay progress, but could not stop it.
Reflecting on his own role in the industry, Otedola recalled founding DAPPMAN in 2002 to challenge the dominance of major marketers and provide independent depot owners a platform to thrive. At the time, depots were strategic for bridging supply gaps in an inefficient market. However, he stressed that times have changed. Many original players have exited, while those remaining cling to obsolete assets. With Nigeria now boasting over four million metric tons of storage capacity,much of it idle,and Dangote Refinery meeting local demand, the old import-driven model is collapsing.
Citing his experience with Zenon Oil, once the country’s largest diesel supplier, Otedola said the market once depended on imports and storage depots. But with Dangote’s local production ensuring efficiency and reliability, those gaps no longer exist. He highlighted added benefits, such as reduced congestion at Apapa, Tincan, and Ibafon ports, and Dangote’s investment in 8,000 eco-friendly CNG trucks to modernize fuel distribution.
He argued that DAPPMAN’s resistance is misplaced, questioning why the group is fighting to preserve a model built on imports, subsidy exploitation, and outdated infrastructure. According to him, the end of Pro Forma Invoices (PFIs) eliminates the basis for depot relevance. He criticized DAPPMAN’s demand that Dangote Refinery subsidize them with ₦1.5 trillion, warning that such costs would ultimately fall on consumers.
Otedola dismissed claims that depots generate significant employment, stating that most employ fewer than five staff, compared to filling stations that create dozens of jobs. He urged depot owners to focus on last-mile retail outlets or diversify into new value chains. Suggesting strategic alternatives, he advised DAPPMAN members to consider selling, restructuring, or even acquiring the Port Harcourt Refinery to prove their competitiveness.
Drawing parallels with the cement sector, Otedola noted that once local production ramped up, import infrastructure became obsolete. He predicted a similar fate for fuel depots unless operators adapt. Pointing to global examples, he said many foreign refinery operators are already reducing or repurposing depots.
The philanthropist credited President Bola Tinubu for fully deregulating the downstream petroleum sector, a reform he said broke entrenched interests and ushered in transparency, competition, and customer-focused service. He recalled how, under the Goodluck Jonathan administration, he warned against fraudulent subsidy claims tied to depots, which siphoned more than ₦2 trillion.
Concluding on a lighter note, Otedola praised Dangote for his transformative efforts, remarking: “Africans are proud of you. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”
