Dangote Refinery Brings Change to Nigeria’s Oil Industry and Economy Otedola Tells DAPPMAN
Nigerian billionaire and Chairman of First Holdco Plc, Femi Otedola, has weighed in on the ongoing fuel supply dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). He urged the association to adapt to the new realities of the oil sector, stressing that clinging to outdated business models would only lead to irrelevance.
In a statement, Otedola described Dangote’s refinery as a historic milestone for Nigeria’s energy independence and economic progress. He said entrenched cabals could try to delay change, but history has always shown that progress cannot be stopped. He reminded Nigerians that he founded DAPPMAN 23 years ago to give independent depot owners a fair platform, but the market has now shifted. According to him, depots that once filled supply gaps have become obsolete in an era of local refining.
Otedola explained that Nigeria now has over 4 million metric tons of storage capacity, most of it idle, while the Dangote Refinery ensures efficient domestic supply. He praised Dangote for not only producing fuel but also modernizing distribution with 8,000 CNG eco-friendly trucks, which will cut pollution and end the gridlock around Apapa.
The billionaire argued that DAPPMAN’s old model of relying on imports, subsidies, and pro forma invoices (PFIs) no longer works. He criticised their demand for Dangote Refinery to subsidise them with N1.5 trillion, saying it would unfairly transfer costs to consumers. Instead, he advised depot owners to consider selling their assets, restructuring, or investing in new opportunities like retail outlets.
He compared the situation to Nigeria’s cement industry, where local production made import-dependent infrastructures redundant. He warned that depots could face the same fate if DAPPMAN refused to evolve. He also suggested that if the group believed in competition, they could jointly acquire the Port Harcourt Refinery to prove their capability.
Otedola further credited President Bola Tinubu for having the political will to deregulate the downstream petroleum sector, ending subsidy exploitation and ushering in transparency and competition. He recalled how under past administrations, especially during Goodluck Jonathan’s tenure, over N2 trillion was siphoned through fraudulent subsidy claims tied to depot licenses. He said the subsidy system encouraged rent-seeking and corruption rather than innovation.
According to him, depots do not even create the jobs many claim, since a typical depot employs only a handful of workers, while filling stations employ dozens. He stressed that last-mile retail holds more promise for employment and growth than outdated depots.
Otedola concluded by applauding Dangote for transforming Nigeria’s oil and gas sector, saying his achievements would benefit future generations. On a lighter note, he told Dangote that after his success, he could now “rest in Monaco jejely,” having earned his place in history.
