Nigerian businessman, Mr Femi Otedola, has shown support to his ally, Mr Aliko Dangote, amid his ongoing tussle with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) over his new petroleum supply model.
In a statement issued on Sunday on recent developments in the downstream sector, Mr Otedola praised the Dangote Petroleum Refinery’s entry into local fuel supply, describing it as a “historic leap for Nigeria’s energy independence and economic future.”
He further described the refinery’s operations as part of a broader transformation that is making Nigeria’s energy market more efficient and accountable, noting that the President Bola Tinubu administration has fully deregulate the downstream petroleum sector, stressing, “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,”
He added that deregulation dismantled systems that encouraged subsidy fraud, product diversion, and smuggling, pointing out he founded the association in 2002 to give independent depot owners a platform to thrive, but argued that many are resisting inevitable change.
The business mogul warned that the old business model built around imports and Product Forwards/Payments from the Nigerian National Petroleum Company (NNPC) is crumbling now that local refining and supply have arrived.
“You can delay change, frustrate it, even sabotage it, but you can never stop it,” Mr Otedola said, urging members to adapt or exit while their assets still hold value.
He pointed out that Nigeria now reportedly has over 4 million metric tonnes of storage capacity, much of it idle, while the Dangote Refinery is supplying fuel locally.
Mr the son of a former Governor of Lagos State, Mr Michael Otedola, also questioned DAPPMAN’s demand that Dangote Refinery should pay N1.5 trillion, emphasising that these funds would simply be passed on to consumers and recalled past abuses under subsidy regimes, saying “over N2 trillion was siphoned through questionable claims” tied to depot licenses.
He also highlighted downstream benefits beyond fuel production, noting Dangote’s investments in logistics including the purchase of 10,000 new CNG eco-friendly trucks and dry cargo carriers.
Mr Otedola argued that these vehicles will reduce pollution, lower breakdowns, and unclog gridlock at major ports and terminals.
Drawing on his own depot and tanker-business experience, he suggested depot ownership no longer delivers the employment or returns some claim.
Mr Otedola counselled that rather than fight reform, DAPPMAN members should explore strategic options such as sell or repurpose depots, invest in last-mile retail (filling stations), restructure, or even combine resources to acquire and run existing refining capacity.
He held up the Folawiyo Group’s early exit from depots as a model of foresight, and warned that failure to adapt could lead to irrelevance or bankruptcy.
In closing, he proposed an unequivocal endorsement of Dangote’s role in the sector’s transformation.
“Aliko’s refinery is not the problem. It is the solution. Let’s move forward.
“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,” he remarked.