Billionaire businessman, Mr. Femi Otedola, has called on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to embrace innovation in the face of sweeping reforms in the downstream sector, warning that clinging to outdated models will only lead to irrelevance and bankruptcy.
In a statement addressing the ongoing fuel supply dispute between DAPPMAN and the Dangote Refinery, Otedola congratulated Alhaji Aliko Dangote on the refinery’s progress, describing it as a “historic leap” for Nigeria’s energy independence and economic transformation.
He noted that while entrenched interests may attempt to resist change, history has shown that such resistance only delays, but never stops, inevitable progress.
Otedola, who founded DAPPMAN in 2002 to challenge the dominance of major marketers, said the association’s original role of filling supply gaps is now obsolete. With the Dangote Refinery supplying fuel locally, he argued, the old import-driven depot model has collapsed.
“Times have changed. Many of the original players have exited, and those left are clinging to assets that no longer reflect today’s business 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.
The Zenon Oil founder emphasised that domestic refining has eliminated the inefficiencies that once justified massive depot infrastructure. He noted that Dangote has further modernised the logistics chain with 8,000 new CNG-powered trucks to reduce pollution and breakdowns.
Criticising DAPPMAN’s demands for Dangote to subsidise its members, Otedola said: “What are they fighting for? To preserve a model built on imports, subsidies, and outdated infrastructure? That era is disappearing. There are no more PFIs; there is no basis to ask Dangote to pay N1.5 trillion that would ultimately be passed on to consumers.”
He dismissed the claim that depots create large-scale jobs, explaining that a typical depot employs only a handful of staff, unlike filling stations that support dozens of workers.
Instead, he urged marketers to invest in last-mile retail outlets or explore new value chains such as refinery ownership.
Drawing parallels with Nigeria’s cement sector, Otedola said fuel depots risk becoming obsolete just as bulk cement carriers were retired once Nigeria achieved self-sufficiency in cement production.
He cited the Folawiyo Group’s early exit from the depot business as an example of strategic foresight.
“DAPPMAN had its place, but today its relevance is fading.
“Aliko’s refinery is not the problem—it is the solution.
“We must stop clinging to outdated privileges and move into a new era of transparency and sustainable value creation,” he stated.
Otedola also credited President Bola Ahmed Tinubu for the political will to fully deregulate the downstream sector, saying the reform has broken the grip of entrenched cabals and created a foundation for transparency, healthy competition, and efficiency.
He recalled warning former President Goodluck Jonathan about subsidy fraud, revealing that over N2 trillion was siphoned through questionable claims tied to depot licenses.
The subsidy regime, he maintained, encouraged rent-seeking and corruption rather than innovation.
Ending on a personal note, Otedola saluted Dangote’s courage, saying: “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.”
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