Billionaire businessman Femi Otedola has weighed in on the escalating dispute between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Dangote Refinery, advising the marketers to embrace reform rather than resist it. Otedola called on DAPPMAN to restructure, explore new business models, and even consider acquiring the Port Harcourt Refinery if they wish to stay relevant in Nigeria’s rapidly evolving downstream oil sector.
The rift between DAPPMAN and the Dangote Refinery has intensified in recent weeks, with depot owners accusing Aliko Dangote of attempting to monopolize fuel distribution through aggressive price cuts. At the center of the controversy is Dangote’s purchase of 4,000 Compressed Natural Gas (CNG) trucks to distribute fuel directly to filling stations nationwide, a move that threatens to bypass depot operators entirely.
“The Old Model Is Dying”
In a detailed statement on Monday, Otedola threw his weight behind Dangote, describing the refinery’s operations as a “historic leap for Nigeria’s energy independence.” He criticized DAPPMAN for clinging to what he called an outdated business model built on fuel imports, subsidy exploitation, and arbitrage gains that no longer reflect Nigeria’s new deregulated reality.
Otedola explained that depots were originally set up to secure Petroleum Products Import Permits (PFIs) from the Nigerian National Petroleum Corporation (NNPC), allowing owners to import fuel and profit from government subsidies. With the end of fuel subsidies and Nigeria now producing petrol locally, he argued, the business case for depots has weakened significantly.
According to him, depot owners should pivot towards retail and last-mile fuel distribution, where job creation and value addition are greater. He warned that those who refuse to adapt risk becoming irrelevant or going bankrupt, comparing the situation to Nigeria’s cement industry where import-dependent operators were forced out once local production became sufficient.
“Depots do not drive employment as much as is often claimed,” he noted, adding that a single filling station provides more jobs than a typical fuel depot. He suggested that DAPPMAN members could pool resources to acquire and operate the Port Harcourt Refinery as a competitive alternative to Dangote’s facility, challenging them to “succeed where NNPC could not.”
Support for Deregulation and Dangote Refinery
Otedola also praised President Bola Tinubu for fully deregulating the downstream petroleum sector, describing the policy as a bold step that dismantled entrenched interests and ushered in a new era of transparency and competition.
He congratulated Aliko Dangote for delivering a refinery capable of meeting Nigeria’s fuel demand and even producing surplus for export, describing it as a game-changer for the economy. He highlighted the benefits of local refining, from eliminating fuel import bills to easing port congestion and cutting transport emissions with Dangote’s fleet of eco-friendly trucks.
Reflecting on his own role as the founder of DAPPMAN in 2002, Otedola said the association was once crucial for filling supply gaps when Nigeria relied heavily on imports. However, he admitted that the market has fundamentally changed, with over four million metric tons of storage capacity now largely idle.
He said he had advised several depot owners as far back as last year to sell their facilities “as scrap while they still had value,” warning that those who refused to adapt would be left behind.
Otedola’s intervention comes as DAPPMAN accuses the Dangote Refinery of using its pricing strategy to edge other marketers out of business. Dangote, however, insists that its direct-to-station distribution model will ultimately lower pump prices for consumers and improve nationwide fuel availability.
A Sector at a Turning Point
Industry analysts say Otedola’s comments could signal a major shift in the dynamics of Nigeria’s downstream market. With Dangote’s refinery now fully operational, the country has reduced its dependence on imports and positioned itself as a potential fuel exporter for West Africa.
Experts note that depot owners must now decide whether to fight the change or innovate to remain viable. Options being discussed include partnerships with foreign investors, mergers to consolidate operations, and diversification into gas, petrochemicals, or logistics.
For Otedola, the message is clear: the age of arbitrage-driven fuel imports is over. What Nigeria needs, he argues, is a new model built on efficiency, transparency, and value creation, not a return to the subsidy era.
“The game has changed,” he said, urging all stakeholders to embrace the new reality and work towards a competitive and self-sufficient energy market.
See also: Bill Gates sounds alarm over child deaths in northern Nigeria
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