Godsent Ogbebor
Otedola Urges Marketers to Adapt, Says Dangote Refinery Signals New Era
Billionaire businessman, Femi Otedola, has advised members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to restructure their businesses and consider acquiring the Port Harcourt Refinery.
He stressed that the era of relying on fuel imports and subsidy-driven profits is over with the full operations of the Dangote Refinery.
Otedola, in a statement, said the downstream petroleum sector had entered a new phase, one that rewards efficiency, transparency, and innovation.
He noted that holding on to old models built around depots, importation, and subsidies would make marketers increasingly irrelevant in a market where local refining is now meeting demand.
He argued that the request for ₦1.5 trillion from Dangote Refinery by depot owners was an attempt to pass unnecessary costs to consumers, insisting that the new system must not be dragged back to the era of inefficiency and corruption.
According to him, depots were never designed to be the backbone of job creation or growth, and their relevance has sharply declined with domestic refining.
He urged DAPPMAN members to embrace last-mile retailing, expand fuel stations, or diversify into new energy value chains rather than resisting progress.
Read also: Otedola Hails Dangote Refinery as ‘Eighth Wonder,’ Praises Tinubu’s Vision
Citing international examples, Otedola compared the shift in Nigeria’s oil sector to changes that occurred in the cement industry, where local production made import-driven infrastructure redundant. He warned that depot operators who failed to evolve risked bankruptcy.
He further congratulated Aliko Dangote and President Bola Tinubu for breaking entrenched interests through deregulation and investment in local refining, describing the development as a milestone for Nigeria’s economic independence.
Reflecting on his role in founding DAPPMAN over two decades ago, Otedola admitted that depots once played a vital role but had since lost relevance in today’s realities.
Furthermore, he added that even global players were shutting down or converting depots, noting that Nigeria’s storage capacity now far exceeds demand.
DAPPMAN had recently accused Dangote Refinery of trying to dominate the downstream market by cutting pump prices and distributing products directly with newly purchased compressed natural gas trucks.
Meanwhile, Otedola dismissed such claims, saying Dangote’s investments represented a solution to inefficiencies, not a threat.
He maintained that the Dangote Refinery, with its eco-friendly trucks and modern supply system, had eased gridlock at ports, improved logistics, and set a new benchmark for the industry. “Aliko’s refinery is not the problem. It is the solution,” Otedola declared.
