Nigerian billionaire businessman and foundation member of the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, Femi Otedola has challenged the relevance of the association in today’s downstream oil sector.
In a strongly worded statement, Otedola accused DAPPMAN of clinging to an outdated model built on fuel imports, subsidy exploitation, and redundant infrastructure.
He dismissed calls by DAPPMAN for Dangote Refinery to pay an alleged ₦1.5 trillion, warning that such demands would only burden consumers.
Otedola maintained that the subsidy system was designed to enrich depot owners, stressing that the future lies in local refining, self-sufficiency, and sustainable value creation.
He recalled warning former President Goodluck Jonathan that the subsidy regime was a racket benefiting depot operators, with over ₦2 trillion allegedly siphoned through questionable claims.
The business tycoon argued that depots neither created significant jobs nor encouraged innovation, noting that most operate with only a handful of staff compared to filling stations that employ dozens.
Otedola’s advice to members of DAPPMAN is to adapt or risk extinction, whether by restructuring, selling off, or investing in last-mile retail outlets.
He also suggested they could pool resources to acquire and manage existing refineries.
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According to him, just as Nigeria transformed its cement industry by producing locally, the same shift is inevitable in petroleum refining, with the Dangote Refinery hailed as the solution, not the problem.
But DAPPMAN insists depots remain critical to product distribution, warning that shutting them out could create supply gaps. The Petroleum and Natural Gas Senior Staff Association, PENGASSAN, and the National Union of Petroleum and Natural Gas Workers, NUPENG, have also raised concerns about job losses in the sector. As the debate deepens, the future of Nigeria’s downstream industry will depend on how stakeholders balance reform with the livelihoods tied to the old system.
(Editor: Okechukwu Eze)
