Mkpoikana Udoma
Port Harcourt — Billionaire businessman, Femi Otedola, has declared that the era of fuel importation and subsidy-driven depot operations in Nigeria is over, warning members of the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, to adapt or face bankruptcy in the wake of the Dangote Refinery’s full operations.
In a strongly worded statement, Otedola congratulated Aliko Dangote for what he described as a “historic leap” for Nigeria’s energy independence and hailed President Bola Ahmed Tinubu for fully deregulating the downstream petroleum sector.
“This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery,” Otedola said.
Otedola, who founded DAPPMAN in 2002, said the association was created to challenge the dominance of major marketers and fill supply gaps left by inefficiencies. But he stressed, the business model that sustained depot owners for decades has collapsed.
“Times have changed. Many of the original players have exited, and those left are clinging to assets that no longer reflect today’s business realities,” he warned.
“Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling.”
He criticised depot owners’ demand for a N1.5 trillion payment from Dangote Refinery, calling it an attempt to preserve a subsidy-era racket.
“Since PFI is gone, I see no reason why Dangote Refinery should subsidise DAPPMAN with N1.5 trillion which they are asking Dangote to pay and subsequently pass this cost to consumers,” he said.
Otedola, who pioneered diesel imports through Zenon Oil and built one of Nigeria’s largest supply networks in the early 2000s, said Dangote had transformed the logistics chain by investing in 8,000 brand new CNG eco-friendly trucks, unlike the aging fleet still used by some operators.
“When I say the game has changed, I speak from deep experience. I was king of it. But with domestic refining and local supply, the gaps we built depots to fill no longer exist,” he stated.
The billionaire also dismissed the argument that depots are major job creators.
“A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians,” he argued, urging DAPPMAN members to focus on last-mile retail outlets instead.
He further compared the shift in Nigeria’s fuel market to the cement industry, where import-dependent carriers became obsolete after Nigeria achieved self-sufficiency.
“The same outcome awaits fuel depots. If DAPPMAN members do not adapt, they will not only become irrelevant, but they may also go bankrupt,” Otedola cautioned.
He suggested depot owners consider selling off their facilities, restructuring, or even bidding for the Port Harcourt Refinery.
Citing global trends, Otedola noted that even in advanced markets, refinery operators are downsizing depot footprints or converting them into warehouses. He praised the Folawiyo Group for exiting early, describing it as “strategic thinking.”
“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,” Otedola declared.
He concluded with a personal message to Dangote: “Africans are proud of you. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”
