Change Has Reached the Oil Sector and Economy Through Dangote Refinery, Otedola Tells DAPPMAN

Nigerian billionaire businessman, Femi Otedola, has weighed in on the ongoing fuel supply dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), advising the association to embrace innovation or risk irrelevance.
In a statement addressing recent developments in the downstream oil and gas sector, Otedola congratulated Aliko Dangote on the progress recorded since the refinery began operations, describing it as a landmark achievement for Nigeria’s energy independence and economic growth.
He warned that entrenched interests seeking to resist reform would only delay, not stop, the transformation already underway. Recalling that he founded DAPPMAN in 2002 to challenge the dominance of major marketers, Otedola noted that times have changed and many depots now sit idle in the face of new realities created by local refining.
“With Dangote’s refinery fully operational, the old business model is crumbling. We now have efficient, reliable, and proudly Nigerian production and supply,” Otedola stated, while pointing out the wider benefits of reduced congestion around key ports and the introduction of 8,000 new CNG-powered trucks for nationwide distribution.
He argued that depots no longer play the vital role they once did, adding that their employment impact has been overstated compared to filling stations that directly create jobs. Instead of clinging to outdated infrastructure, Otedola urged DAPPMAN members to focus on retail outlets, restructuring, or investing in new value chains.
Drawing parallels with the cement industry, he noted that once Nigeria became self-sufficient in production, many bulk carriers and depots became obsolete. He warned that a similar outcome awaits fuel depots unless operators adapt quickly.
According to Otedola, resisting change would only lead to bankruptcy, while forward-thinking strategies such as acquiring or restructuring refineries could secure the association’s relevance in a transformed market.
He further credited President Bola Tinubu for the political will to fully deregulate the downstream petroleum sector, saying the reform has dismantled entrenched interests and ushered in an era of transparency, competition, and accountability.
Otedola also revisited the subsidy regime under former President Goodluck Jonathan, alleging that over N2 trillion was siphoned through fraudulent claims linked to depot licenses, which encouraged rent-seeking and corruption instead of innovation.
He concluded by praising Dangote’s efforts: “Aliko’s refinery is not the problem. It is the solution. Let’s move forward. Africans are proud of you, and yes, my dear brother, you can now go to Monaco and rest—you’ve earned it.”