Otedola Says N2trn Lost To Shady Subsidy Claims Under Jonathan

Billionaire businessman Femi Otedola has alleged that more than N2 trillion was diverted through questionable petrol subsidy claims during the administration of former President Goodluck Jonathan.

He linked the losses to a system built around depot licences that he said favored a small group of fuel marketers.

The claim came as Otedola backed the Dangote Petroleum Refinery in its ongoing clash with the Depot and Petroleum Products Marketers Association of Nigeria. The dispute began after the marketers accused the refinery of undercutting fuel prices to weaken competition rather than acting in the national interest.

Responding to the allegation, Dangote refinery disclosed that the marketers had demanded an annual subsidy of N1.5 trillion to help them sell fuel at the same prices offered by the refinery. The revelation has sparked fresh debate over the true costs and beneficiaries of Nigeria’s subsidy regime.

Otedola argued that the petrol subsidy system was never designed to help ordinary Nigerians but instead enriched depot owners, who he described as the main winners. He noted that the system encouraged rent-seeking and corruption while doing little to create jobs or improve efficiency in the sector.

Challenging the notion that depots provide large-scale employment, Otedola pointed out that a typical depot employs only a handful of workers, while a single filling station can create dozens of jobs across different roles. He suggested that depot owners should shift focus toward retail operations that directly serve the public.

Drawing comparisons from other industries, Otedola recalled how Nigeria’s shift to local cement production rendered bulk import vessels obsolete. He predicted that fuel depots would face a similar fate now that the country is refining products locally.

He warned that unless depot owners adapt by selling, restructuring, or investing in new value chains, they risk becoming irrelevant or even bankrupt. He further advised that instead of fighting change, the marketers could pool their resources to buy the Port Harcourt refinery and prove their capacity in local refining.

The remarks add a new dimension to the ongoing fuel market row, raising questions about the past misuse of subsidy funds and the readiness of depot owners to adjust to a new era of local refining.