Otedola Backs Dangote Refinery, Warns Depot Owners To Adapt

Femi Otedola has stepped into the ongoing dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria, urging marketers to rethink their business model as the refinery reshapes Nigeria’s energy landscape.

The billionaire businessman explained that the Dangote Refinery represents a turning point for the country, securing energy independence and stabilising fuel supply. He described the facility as the future of Nigeria and advised depot owners that survival now depends on moving with the new reality.

Otedola traced the roots of DAPPMAN back to 2002 when he founded the association to challenge the control of major marketers and give independent depot owners a fair chance. At that time, depot ownership was essential for bridging supply gaps in an inefficient system. Two decades later, he noted that the model has lost its relevance as fuel is now refined locally and storage capacity across the country lies idle.

He pointed out that the refinery is already changing the logistics chain by deploying thousands of new compressed natural gas trucks for nationwide distribution. This move, he said, will reduce pollution, limit breakdowns, and replace the aging trucks still being used by some operators.

The businessman criticised calls for the refinery to provide financial support to marketers, warning that such demands would push unnecessary costs onto consumers. He compared the shift to the transformation of the cement industry, where local production made import-driven supply chains obsolete.

Otedola urged DAPPMAN members to redirect their investments toward fuel retailing and new ventures instead of clinging to old depot structures. He suggested that if they are serious about competition, they could even explore buying and running one of the government-owned refineries.

He further credited President Bola Tinubu for taking bold steps to deregulate the downstream sector, ending years of subsidy abuse and rent-seeking. He recalled how the subsidy system had drained the country of trillions of naira in the past, particularly under previous administrations, and argued that such practices held back growth and transparency.

Otedola concluded that Nigeria has now entered a new phase where outdated structures must give way to fresh opportunities. He insisted that the Dangote Refinery is not only solving a long-standing problem but is also creating a more efficient and accountable energy future for the country.