Billionaire businessman Femi Otedola has alleged that more than N2 trillion was siphoned through questionable petrol subsidy claims linked to depot licences during the administration of former President Goodluck Jonathan.
Mr Otedola made this known in a statement on Monday in support of the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
On September 16, DAPPMAN accused Dangote Refinery of engaging in market-disruptive practices, claiming its fuel price cuts were aimed at weakening competition.
The refinery, in its response, alleged that DAPPMAN demanded an annual subsidy of N1.5 trillion to enable members match its gantry prices.
Otedola said the subsidy system was structured to favour depot owners.
“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries. Over N2 trillion was siphoned through questionable claims, all tied to depot licenses,” he said.
He added that depots created little employment compared to filling stations.
“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.”
Otedola argued that depots had outlived their relevance in the current downstream structure.
“The setting up of depots was mainly to collect PFIs. No depots, no PFIs from NNPC who were sole suppliers of gasoline at the time. Since PFI is gone, I see no reason why Dangote Refinery should subsidize DAPPMAN with N1.5 trillion which they are asking Dangote Refinery to pay and subsequently pass this cost to consumers.”
He urged depot owners to adapt to changes in the oil and gas sector.
“If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains. In fact, if they truly believe in competition, they could even come together and acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not.”
Otedola also drew parallels with the cement industry, saying that when Nigeria started producing cement locally, import-dependent infrastructure became redundant.
