Chairman of Geregu Power Plc and billionaire businessman, Femi Otedola, on Sunday declared that the business model of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) is outdated and no longer fit for purpose in Nigeria’s evolving energy sector. He praised Aliko Dangote for ushering in a new era of efficiency and transparency through the Dangote Refinery, describing it as a transformational force in the downstream oil industry.
Otedola, who founded DAPPMAN in 2002 to empower independent depot owners and challenge the dominance of major marketers, said the group has strayed from its founding vision. According to him, DAPPMAN today is resisting much-needed reforms and clinging to a system built on import dependence, fuel subsidies, and inefficient infrastructure.
“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 To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure?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 said. “Many of the original players have exited, and those left are clinging to assets that no longer reflect today’s business realities. I advised some of them as far back as last year to sell their depots as scrap while they still had value.”
With the full deregulation of the sector under President Bola Tinubu and the commencement of local fuel refining by Dangote, Otedola argued that the old system of Pro Forma Invoices (PFIs) and subsidy margins is no longer sustainable. He criticised calls for Dangote to subsidise marketers with N1.5 trillion, insisting it would only harm consumers and reverse progress.
Otedola also reflected on the subsidy regime under former President Goodluck Jonathan, stating that he personally warned the ex-president about systemic fraud. “Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy encouraged rent-seeking and corruption, not innovation,” he said.
Highlighting the broader impact of Dangote’s refinery, he noted that it has revolutionised the supply chain—eliminating congestion at Apapa and Tincan ports and introducing 8,000 eco-friendly CNG trucks to reduce emissions and breakdowns. “Aliko is not just producing fuel; he’s redefining how it gets to the people,” Otedola said.
He dismissed claims that depots are significant job creators, stating that most employ only a handful of people. “If anything, DAPPMAN members should focus on expanding retail outlets, not clinging to tanks built for an import-driven market that no longer exists,” he argued.
Otedola concluded by urging DAPPMAN members to either evolve or risk extinction, suggesting they consider new investments or even take over underperforming public refineries. “DAPPMAN had its place, but today its relevance is fast fading. Aliko’s refinery is not the problem—it is the solution. Let’s move forward,” he said. “And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”