By Ihechi Enyinnaya
Billionaire businessman, Femi Otedola, has urged members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to embrace innovation or risk extinction in the face of changing realities in the oil and gas sector.
In a statement on Sunday, Otedola weighed in on the ongoing fuel supply dispute between DAPPMAN and the Dangote Refinery, stressing that the refinery represents a historic leap toward Nigeria’s energy independence.
“I founded DAPPMAN in 2002 with a mission to challenge the dominance of major marketers and give independent depot owners a fair platform to thrive. But times have changed. Many of the original players have exited, and those left are clinging to assets that no longer reflect today’s business realities,” Otedola said.
He noted that Nigeria now has over 4 million metric tons of largely idle storage capacity, and with Dangote Refinery supplying fuel locally, the old import-driven business model is collapsing.
“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing,” he stated, adding that Dangote should not be pressured to subsidise the association to the tune of N1.5 trillion.
Otedola praised Aliko Dangote for transforming the downstream sector, not only through domestic fuel production but also by modernising logistics with 8,000 CNG-powered trucks. He dismissed claims that depots generate massive employment, insisting that filling stations provide far more jobs.
He advised DAPPMAN members to shift focus to last-mile retail, restructuring, or investing in new value chains, warning that refusal to adapt could lead to bankruptcy.
Comparing the trend to the cement industry, he recalled that once Nigeria began local production, import-dependent businesses collapsed. “The same outcome awaits fuel depots,” he said.
Otedola also credited President Bola Tinubu for having the political will to deregulate the downstream petroleum sector, a move he described as ending decades of subsidy fraud, rent-seeking, and inefficiency.
“Aliko’s refinery is not the problem. It is the solution. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation,” he concluded.