Nigeria’s billionaire businessman, Mr. Femi Otedola, has weighed in on the ongoing fuel supply disagreement between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria, urging the association to embrace innovation or risk obsolescence.

In a statement addressing recent developments in the downstream oil and gas sector, Otedola said he had been closely following the debate and felt compelled to offer his perspective on its implications for Nigeria’s future.

Otedola also commended Aliko Dangote on the refinery’s achievements since it began operations, describing the milestone as a historic step toward Nigeria’s energy independence and broader economic growth.

He noted, however, that the country continues to face resistance from entrenched interests attempting to slow progress. “History has shown that change can only be delayed, never halted,” Otedola stated.

Reflecting on the past, Otedola recalled that he founded DAPPMAN 23 years ago, in 2002, with the mission of challenging the dominance of major marketers and providing independent depot owners with a fair platform to compete.

At its inception, the association aimed to address critical supply gaps left by an inefficient downstream system.

However, Otedola noted that the landscape has since shifted, with many original players having exited the sector and those remaining holding onto assets that no longer align with today’s business realities.

“But history has shown time and again: you can delay change, frustrate it, even sabotage it but you can never stop it. I founded DAPPMAN in 2002 (23 years ago) with a clear mission, to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

“I personally structured the group, appointing the late George Enenmoh, then Managing Director of Ascon Oil, as Chairman, while I served as Vice Chairman and Sayyu Dantata as Secretary. At the time, depot ownership was strategic. We were filling critical supply gaps left by an inefficient system.

“But times have changed. Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities . I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling,” he argued.

The business mogul added, “Zenon Oil pioneered the modern diesel business in Nigeria and grew to become the largest supplier in the country. We built depots to store our imported diesel because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery fully operational, those gaps no longer exist.

“We now have domestic production and local supply efficient, reliable, and proudly Nigerian. Furthermore, we must not fail to recognise the attendant benefits of eliminating the grid lock around the Ibafon, Tincan and Apapa areas due to the operations of the Dangote Refinery.”

Otedola highlighted that Dangote has gone beyond merely producing fuel, upgrading the entire logistics chain. He noted that the company has purchased 8,000 new eco-friendly CNG trucks to distribute fuel nationwide, promising lower emissions and greater reliability compared with the aging vehicles still used by some operators.

“I know this business intimately. I was king of it and at the peak of it in 2005 (20 years ago), I was conferred with the life patron of the PTD (Petroleum Tanker Drivers) union by Mr Akinlaja. So, when I say the game has changed, I speak from deep experience.

“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing. The setting up of depots was mainly to collect PFIs. No depots, no PFIs (Pro Forma Invoices) from NNPC who were sole suppliers of gasoline (petrol) at the time and which thus led to the breeding of complacent importers whose sole agenda was on arbitrage and subsidy margins,” Otedola added.

He argued that, with the absence of PFIs, there is no justification for DAPPMAN’s demand that the Dangote Refinery subsidise them with N1.5 trillion—a cost that would ultimately be passed on to consumers.

He praised Dangote for driving transformative change in the downstream sector, likening his impact to that of Amazon Incorporated.

Otedola also challenged the notion that depots generate substantial employment, calling it a myth.

“Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners.
“If anything, DAPPMAN members should be focusing on owning and scaling last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us”, he stated.

Drawing on the global context, Otedola noted that depots in cities like Amsterdam and Houston were primarily designed to serve export markets, particularly in Africa. With Nigeria now producing refined fuel locally, he argued, such infrastructure is becoming increasingly redundant.

“The same thing happened in the cement industry. Once Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired, many sold as scrap. The same outcome awaits fuel depots,” he said.

Otedola warned that DAPPMAN members risk becoming irrelevant—or even facing bankruptcy—if they fail to adapt to the changing landscape. He urged them to consider options such as selling, restructuring, or investing in new value chains.

“Those who truly believe in competition could even come together to acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not,” he added.

He noted that even in developed markets, refinery operators are downsizing their depot networks, often converting them into bonded warehouses or exiting the business entirely.

Citing the Folawiyo Group as an example, Otedola highlighted how the company, known for its foresight and integrity, sold its depot and exited early.

“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” he stated.

Otedola emphasized that credit must go to President Bola Tinubu for demonstrating the political will to fully deregulate the downstream petroleum sector—a feat no previous leader had achieved.

He said this landmark reform has dismantled entrenched interests, ushering in a new era of transparency, healthy competition, and customer-focused service delivery.

“In a sector long plagued by rent-seeking, subsidy fraud, product diversion, and smuggling, this reform marks a decisive break from the past and lays the foundation for a more efficient and accountable energy market. Yet despite this progress, there are still voices clinging to the old ways. Voices determined to resist change, even when it’s clear the tide has turned,” Otedola wrote.