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- Nigerian billionaire and businessman, Femi Otedola, has waded into the Dangote, fuel depot owners’ feud
- In a strongly worded letter to the association, Otedola narrated the history of the association and his role in founding it
- He stated that the time for the depot owners to pack up and go has come, as the model is now obsolete and no longer viable
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
Nigerian billionaire businessman and philanthropist Femi Otedola has stepped into the heated standoff between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
In a strongly worded letter, Otedola declared that depot owners are holding onto a business model that has outlived its relevance in Nigeria’s deregulated oil market.
Credit: Otedola
Source: Instagram
Depots losing relevance
The revelation was striking: Otedola himself founded DAPPMAN in 2002 to give independent depot owners a voice against the dominance of major marketers.
“At that time, depot ownership was strategic,” he recalled, adding that he personally structured its leadership with George Enenmoh as chairman and Sayyu Dantata as secretary, while he served as vice-chairman.
Now, more than 20 years later, he argues the model has become redundant with the rise of Dangote’s 650,000-barrel-per-day refinery.
According to Otedola, Nigeria has over 4 million metric tons of petroleum storage capacity, much of it sitting idle. He said many depot owners failed to adapt to changing realities, clinging to facilities that no longer add value.
“I advised some of them last year to sell their depots as scrap while they still had value,” he noted. “History shows you cannot stop change; you can only delay it.”
He also condemned DAPPMAN’s recent ₦1.5 trillion demand from Dangote Refinery, calling it an unnecessary burden that would only hurt Nigerian consumers.
Dangote’s disruption
Otedola praised Aliko Dangote’s refinery as a “historic leap” for Nigeria’s energy independence, comparing its disruptive impact to Amazon’s transformation of global commerce.
Beyond refining, he highlighted Dangote’s deployment of 8,000 new CNG-powered trucks for nationwide distribution—a move he said reduces Apapa gridlock, modernises logistics, and cuts pollution.
“Dangote is not just producing fuel; he’s reshaping the entire downstream ecosystem,” Otedola said.
Jobs and value chains
Countering depot owners’ claims about job creation, Otedola argued that most depots employ fewer than ten people, compared to dozens at filling stations.
He urged DAPPMAN members to shift focus toward retail outlets and last-mile distribution, areas that generate real employment and economic value.
He drew parallels to the cement industry, where bulk carriers disappeared once Nigeria achieved self-sufficiency. Depot infrastructure, he warned, faces the same fate.
Reform and political will
Otedola also credited President Bola Tinubu for implementing full deregulation of the downstream petroleum sector, ending decades of subsidies and rent-seeking.
He alleged that up to ₦2 trillion was siphoned annually under previous administrations through fraudulent subsidy claims tied to depot licenses.
“Tinubu’s reform dismantled entrenched cabals and brought transparency,” he said, stressing that Dangote’s refinery complements this new efficiency-driven system.
A call for adaptation
The billionaire advised depot owners to explore strategic alternatives: investing in filling stations, restructuring assets, or even jointly acquiring the Port Harcourt Refinery. He cited the Folawiyo Group as an example of foresight, noting how it exited early by selling its depot.
“DAPPMAN had its place, but its relevance is fading. Aliko’s refinery is not the problem—it is the solution,” he declared.
And with a touch of humour, he saluted Dangote: “Africans are proud of you, my brother. Now you can go to Monaco and rest jejely like me—you’ve earned it.”
Credit: Novatis
Source: Getty Images
Dangote’s direct petrol supply cuts out middlemen
Legit.ng earlier reported that As Dangote Refinery begins its direct fuel distribution, bulk buyers and filling stations are jettisoning middlemen for the refinery’s direct delivery.
According to the President of the National Association of Road Transport Owners (NARTO), Yusuf Othman, bulk buyers have renegeged on the contracts signed with his members in favour of Dangote’s free delivery.
The NARTO leader said that his members have about 30,000 trucks and cannot deliver fuel for free.
Source: Legit.ng
