Billionaire businessman Femi Otedola has revealed that over N2 trillion was fraudulently paid in fuel subsidy claims during the administration of former President Goodluck Jonathan, despite his personal warnings to the ex-president about widespread manipulation in the subsidy system.
Otedola made the revelation on Sunday, explaining that the fraudulent claims were tied to depot licenses used by oil marketers to obtain subsidy payments based on inflated or fictitious fuel import figures. According to him, the subsidy regime encouraged rent-seeking and corruption rather than transparency or innovation.
“The system was built to benefit depot owners. Over N2 trillion was siphoned through questionable claims,” he stated, adding that the policy created an environment where importers exploited loopholes without adding value to Nigeria’s energy sector.
He praised President Bola Tinubu for having the political will to fully deregulate the downstream petroleum sector, calling it a historic step that has dismantled entrenched interests and introduced a more accountable, competitive market structure.
Otedola also lauded Aliko Dangote for the successful rollout of the Dangote Refinery, which now supplies fuel locally and has significantly reduced reliance on fuel imports. He highlighted the refinery’s investment in 8,000 CNG-powered trucks, which are improving nationwide distribution and cutting pollution.
Recalling his own experience in the sector, Otedola noted that companies like Zenon Oil built depots out of necessity during the import-driven era. However, with Nigeria now refining its own fuel, he said those storage facilities are largely obsolete and no longer economically viable.
He criticized the idea that depots create large-scale employment, arguing that retail filling stations offer far more jobs and better align with current market needs. He urged stakeholders to stop resisting reform and invest in the future by exploring new value chains in retail and logistics.
Otedola concluded by encouraging players in the sector to embrace the new reality of self-sufficiency and local production, stressing that resisting change will only lead to bankruptcy and irrelevance. “Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” he said.