Dare Babalola
Billionaire businessman, Femi Otedola, has reflected upon the ongoing fuel supply dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
In a statement posted on his X account on Monday, Otedola recalled why he founded the association in 2002, stating that the association was formed to challenge the dominance of major marketers and provide independent depot owners with a platform.
He recollected that at the time DAPPMAN was founded, depots were created to close gaps in fuel supply caused by inefficiencies in the system.
The billionaire, however, added that those in charge of the association today are attempting to frustrate reforms.
He said, “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 MD 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.”
He noted that with the coming of the Dangote Refinery, the environment has changed, saying that DAPPMAN’s purpose might have come to an end.
To back his claim, Otedola argued that many depots now have little use, with most of Nigeria’s four million metric tons of storage capacity lying idle.
“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,” he added.
Continuing, Otedola noted that Dangote Refinery has removed the need for imports, making the old business model obsolete. “The old business model is crumbling,” he said.
Otedola also defended Dangote Refinery against alleged calls from DAPPMAN for a N1.5 trillion subsidy, arguing that the cost would be unfairly passed on to Nigerians.
“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing,” he further posited.
He stressed that the association should shift focus from depots to retail outlets that can generate jobs, arguing that “Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians.”
Otedola also praised Dangote for transforming the logistics chain by purchasing 8,000 CNG trucks to distribute products nationwide. “So, when I say the game has changed, I speak from deep experience,” he said.
Reflecting on his past role in the sector, he linked DAPPMAN’s relevance to subsidy claims, saying the policy created room for fraud. “Over N2 trillion was siphoned through questionable claims, all tied to depot licenses,” he said.
Otedola concluded by urging DAPPMAN to accept new realities.
“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” he stated.
