Business magnate Femi Otedola has thrown his weight behind the Dangote Refinery, calling on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to adapt to new realities in the oil sector or risk fading into irrelevance.
In a statement addressing the recent rift between the refinery and DAPPMAN, Otedola described the $20bn project as a turning point for Nigeria’s energy security and economic future. He praised Aliko Dangote for “ushering in an era of efficiency, local production, and independence from fuel imports.”
Otedola, who founded DAPPMAN in 2002, noted that the association had served a vital role in bridging supply gaps in the past. However, he said the landscape has shifted drastically with Nigeria now refining fuel domestically. According to him, many depots are obsolete, with thousands of tonnes of storage capacity lying idle.
“Clinging to a business model built on import permits and subsidies is no longer sustainable,” Otedola said, warning that resisting change could drive many depot owners into bankruptcy. Instead, he advised them to diversify into downstream retail, repurpose facilities, or even consider acquiring refineries to stay competitive.
Highlighting Dangote’s investment in 8,000 eco-friendly trucks for nationwide fuel distribution, Otedola said the refinery had not only transformed supply but also modernised logistics while easing port congestion in Lagos.
He also dismissed claims that depots generate significant employment, stressing that filling stations create far more jobs for Nigerians.
Drawing parallels with the cement industry, where imports collapsed once local production took off, Otedola argued that depots built for an import-driven economy will eventually meet the same fate.
The billionaire further credited President Bola Tinubu for fully deregulating the downstream petroleum sector, describing the reform as “a historic break from subsidy fraud, rent-seeking, and inefficiency.” He recalled how, under past administrations, trillions of naira were lost to fraudulent subsidy claims tied to depot licenses.
“Aliko’s refinery is not the problem—it is the solution,” Otedola declared, adding that DAPPMAN should stop fighting the inevitable shift and instead embrace innovation, sustainability, and transparency.
On a lighter note, he congratulated Dangote on his achievement, joking that the industrialist could now “rest in Monaco” knowing he had transformed Nigeria’s oil industry.
