By Sikiru Obarayese
Copyright tribuneonlineng
Billionaire businessman Femi Otedola announced on Monday that he advised some members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) last year to sell their depots as scrap while they still had value.
In a statement posted on his X account, he expressed support for the Dangote Refinery in its ongoing dispute with DAPPMAN, an organization he founded. He stated that the traditional business model of fuel depots is now outdated.
Otedola offered a strong endorsement of President Bola Tinubu’s deregulation of the petroleum sector and hailed the Dangote Refinery as a historic leap towards Nigeria’s energy independence.
“I advised some of them as far back as last year to sell their depots as scrap while they still had value,” Otedola wrote, arguing that the Dangote Refinery’s local supply model has rendered the old system of importing fuel and storing it in depots irrelevant.
He pointed out that Nigeria now has over 4 million metric tons of mostly idle storage capacity, a relic of an import-driven economy.
Otedola, who founded DAPPMAN in 2002 to empower independent depot owners, stated that the organisation’s original purpose has been fulfilled and that members must now “adapt or perish.”
He warned against what he called “entrenched cabals” clinging to outdated practices and resisting change.
The businessman also took aim at a reported request by DAPPMAN for a N1.5 trillion subsidy from the Dangote Refinery to cover logistics costs, stating that this would be passed on to consumers.
Otedola described the former subsidy regime as a system built to benefit depot owners, allowing “over N2 trillion” to be siphoned through “questionable claims.”
Otedola’s comments come amid a public dispute between the Dangote Refinery and DAPPMAN over market structure, with each side accusing the other of being anti-competitive.
Dangote has accused the marketers of seeking a massive subsidy, while DAPPMAN has refuted the claims, alleging the refinery is offering lower prices to foreign buyers.
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