Nigeria’s billionaire businessman, Femi Otedola, has waded into the ongoing fuel supply dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), warning that the association must “innovate or perish.”
Otedola, in a statement, said he had been following the debate closely and felt compelled to share his perspective on what he called a decisive moment for Nigeria’s oil and gas industry. While congratulating Aliko Dangote on the success of his refinery, he described it as “a historic leap for Nigeria’s energy independence and economic future.”
The philanthropist warned that entrenched cabals could not resist change forever. “History has shown time and again: you can delay change, frustrate it, even sabotage it but you can never stop it,” he stated.
Founding of DAPPMAN
Looking back, Otedola recalled establishing DAPPMAN in 2002 with the late George Enenmoh as chairman, himself as vice chairman, and Sayyu Dantata as secretary. “I founded DAPPMAN in 2002 (23 years ago) with a clear mission, to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive,” he said.
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At the time, depot ownership was strategic. “We were filling critical supply gaps left by an inefficient system,” he explained. However, he noted that “times have changed. Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities.”
According to him, he had even advised some to sell their depots as scrap while they still had value. “Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling,” he added.
New realities in the downstream sector
Highlighting downstream sector challenges, Otedola argued that Zenon Oil once pioneered diesel importation because the market was import-driven and riddled with inefficiencies. “But with Dangote’s refinery fully operational, those gaps no longer exist. We now have domestic production and local supply efficient, reliable, and proudly Nigerian,” he said.
He added that the refinery had also improved logistics. “Furthermore, we must not fail to recognise the attendant benefits of eliminating the gridlock around the Ibafon, Tincan and Apapa areas due to the operations of the Dangote Refinery,” he observed.
Otedola hailed Dangote’s purchase of 8,000 CNG-powered trucks. “More than just producing fuel, Aliko Dangote has elevated the entire logistics chain, purchasing 8,000 brand new CNG eco-friendly trucks that will distribute across the country with less pollution and fewer breakdowns, unlike the aging, rickety trucks still used by some operators,” he explained.
Outdated business model
Criticising DAPPMAN’s resistance, he asked: “What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing.”
Otedola dismissed claims that depots create large-scale jobs. “Depots do not drive employment as some claim. 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,” he said.
Instead, he urged DAPPMAN members to rethink their strategy. “If anything, DAPPMAN members should be focusing on owning and scaling last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us,” he advised.
Warning against collapse
He compared the current struggle to the cement industry. “The same thing happened in the cement industry. Once 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,” he warned.
“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” Otedola urged.
Commending Tinubu’s reforms
He credited President Bola Tinubu for the deregulation of the downstream petroleum sector. “This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery,” he said.
Otedola recalled subsidy abuses in the past. “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,” he noted.
On a lighter note, he signed off with humour: “Africans are proud of you (Dangote). And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”