Mr. Femi Otedola, Nigeria’s billionaire businessman, yesterday lent his voice in the current dispute between the Depot and Petroleum Products Marketers and the Dangote Refinery over fuel supplies.
The billionaire entrepreneur emphasised that he had been following the recent argument between the two parties over gasoline supply difficulties and felt obliged to offer some perspective, particularly with regard to the nation’s future.
Speaking about current problems in the oil and gas industry, particularly downstream, Otedola also commended Aliko Dangote on the progress made since his refinery started up, calling it a historic step forward for Nigeria’s economic future and energy independence.
Otedola asserted that long-standing cabals who still think they can thwart change pose a threat to Nigeria, but history has repeatedly demonstrated that change can only be postponed, never stopped.
Looking back, Otedola recalled that he established DAPPMAN in 2002, 23 years ago, with the sole goal of undermining the power of the big marketers and providing independent depot owners with an equitable opportunity to succeed.
He stated that the association’s goal at the time was to close important supply gaps caused by an ineffective downstream system. But he highlighted that things have changed since then, with many of the original participants leaving the stage and those who remain holding onto assets that don’t represent the business realities of today.
“But history has shown time and again: you can delay change, frustrate it, even sabotage it but you can never stop it. 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.
“I personally structured the group, appointing the late George Enenmoh, then Managing Director of Ascon Oil, as Chairman, while I served as Vice Chairman and Sayyu Dantata as Secretary. At the time, depot ownership was strategic. We were filling critical supply gaps left by an inefficient system.
“But 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 . I advised some of them as far back as last year 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.
“Zenon Oil pioneered the modern diesel business in Nigeria and grew to become the largest supplier in the country. We built depots to store our imported diesel 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. Furthermore, we must not fail to recognise the attendant benefits of eliminating the grid lock around the Ibafon, Tincan and Apapa areas due to the operations of the Dangote Refinery,” Otedola argued.
Using the global perspective as a guide, the benefactor noted that while depots in Amsterdam or Houston were built to service export markets, particularly in Africa, such infrastructure is becoming less and less required as Nigeria refines locally.
Otedola contended that DAPPMAN members risk becoming bankrupt in addition to being irrelevant if they do not adjust.
He advised them to think about selling, reorganising, or investing in new value chains rather than opposing advancement. He added that if they genuinely believe in competition, they could even band together and buy the Port Harcourt Refinery to see if they can thrive where NNPC was unable to.
More significantly, though, he pointed out that President Bola Tinubu deserves praise for fully deregulating the downstream petroleum industry—something no other leader had the political fortitude to achieve before him.
He claimed that a new era of openness, healthy competition, and customer-focused service delivery has been ushered in by this one act, which has shattered the hold of powerful interests.
The benefactor insisted that depot licenses were linked to all of these false subsidy claims, pointing out that the policy promoted corruption and rent-seeking while rewarding neither transparency nor innovation.
“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria) 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,” the business mogul stated.
On a lighter note, he said: “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.”
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