Nigeria’s oil marketers have dismissed recent remarks by billionaire businessman Femi Otedola urging operators in the downstream sector to abandon their existing infrastructure and switch focus to retail outlets.
Speaking on Tuesday, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said Otedola’s position was both insensitive and poorly thought out. He argued that scrapping facilities that have served the country for decades would be a waste of capital and effort.
Gillis-Harry questioned whether Otedola truly meant that investors should let billions of naira in tank farms and depots “go down the drain,” noting that these assets remain strategically located in hubs like Lagos, Port Harcourt, Calabar, and Ogara, where they play a crucial role in fuel distribution.
He also reminded the public that while Otedola has since moved his portfolio into new areas, many stakeholders remain heavily tied to the sector. “It’s easy to advise others to quit after you’ve diversified, but many still depend on these investments for survival,” Gillis-Harry added.
The marketers acknowledged the significance of Dangote Refinery’s entry into the market, saying it brings stability and reduces reliance on fuel imports. However, they stressed that this does not invalidate the relevance of existing depots and storage facilities.
Otedola had earlier advised members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to rethink their business models, suggesting that the era of fuel-import-driven tank farms was over. Instead, he urged operators to channel resources into last-mile retail outlets to stay competitive in the new energy landscape.
But for PETROAN, the call is premature and dismissive of the realities on the ground. “Investors who put their life savings into this industry should not be told to scrap everything overnight,” Gillis-Harry said, adding that the debate should be approached with deeper reflection rather than sweeping declarations.
