Otedola to DAPPMAN: Dangote Refinery Marks a New Era for Nigeria’s Oil Sector.

Otedola to DAPPMAN: Dangote Refinery Marks a New Era for Nigeria’s Oil Sector.

 

Lucky Akra

 

Renowned Nigerian businessman and philanthropist, Mr. Femi Otedola, has weighed in on the ongoing dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), describing the emergence of the $20 billion facility as a transformative moment for Nigeria’s oil and gas sector.

In a strongly worded statement released yesterday, Otedola urged DAPPMAN to adapt to current market realities or risk extinction. He argued that the old business model of fuel imports, subsidy exploitation, and outdated infrastructure has become obsolete in the face of local refining capabilities now provided by the Dangote Refinery.

“You can delay change, frustrate it, even sabotage it,but you can never stop it,” Otedola said.

Otedola, who founded DAPPMAN in 2002 to break the monopoly of major marketers, reflected on the group’s original mission to close supply gaps in an inefficient downstream sector. However, he said the context has changed drastically over the last two decades.

“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.

He commended Aliko Dangote for his vision and investment in building Africa’s largest refinery, which he described as a “historic leap” for Nigeria’s energy independence and economic future.

Otedola argued that the demand by DAPPMAN for Dangote Refinery to absorb a N1.5 trillion subsidy and pass the cost to consumers was unreasonable and backward-looking.

“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 To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure?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 stated.

With Nigeria now refining its fuel locally, Otedola pointed out that the massive import-driven storage capacity,over 4 million metric tons, much of it idle,has lost its relevance.

He emphasized that the future lies not in holding onto old depots but in investing in last-mile retail and new value chains that align with a self-sufficient energy economy.

Drawing from his experience as a former leading diesel supplier and founder of Zenon Oil, Otedola said he deeply understands the market transformation underway.

 

“I know this business intimately. I was king of it and at the peak in 2005. When I say the game has changed, I speak from deep experience,” he said.

He praised Dangote’s decision to acquire 8,000 new CNG-powered trucks for fuel distribution, which he said would reduce pollution, breakdowns, and congestion,a marked improvement over the aging trucks still used by some marketers.

Otedola also credited President Bola Tinubu for implementing the long-delayed deregulation of the downstream sector, a bold move he said previous governments lacked the political will to execute.

“This reform has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery,” he said.

He recalled warning former President Goodluck Jonathan about the massive fraud surrounding fuel subsidy claims, estimating that over N2 trillion was siphoned through a system built to benefit depot owners.

Otedola dismissed the idea that depots are major employers, claiming that each depot may employ only a handful of people, while a single filling station provides jobs to dozens.

He urged DAPPMAN members to either adapt by selling, restructuring, or investing in modern energy infrastructure — or risk irrelevance.

“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,” he asserted.

He cited the Folawiyo Group as an example of strategic foresight, noting the company’s early exit from the depot business before its decline.

On a lighter note, Otedola concluded his statement with praise for Dangote’s accomplishments, saying:

“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.”