Billionaire businessman Femi Otedola has accused depot owners of exploiting Nigeria’s petrol subsidy system during former President Goodluck Jonathan’s administration, alleging that over N2 trillion was siphoned through questionable claims linked to depot licences.
Otedola made the revelation while supporting Dangote Petroleum Refinery in its dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). The marketers had recently accused the refinery of engaging in market-disruptive practices by cutting pump prices to weaken competition. Dangote Refinery countered, stating that DAPPMAN demanded an annual subsidy of N1.5 trillion to enable members to match the refinery’s gantry prices.
Otedola said he personally warned President Jonathan that the subsidy system was built to benefit depot owners, who became the primary beneficiaries by siphoning funds through fraudulent claims tied to depot licences. He criticized the policy for promoting corruption, rent-seeking, and lacking transparency or innovation.
He also challenged the notion that depots generate significant employment, noting that a typical depot employs no more than five people, while filling stations provide jobs for multiple attendants, cashiers, security personnel, and cleaners.
Advising depot owners to move away from outdated business models, Otedola cited the cement industry as an example where bulk carriers became obsolete after local production increased. He warned that fuel depots face similar risks of becoming irrelevant or bankrupt if they do not adapt.
Otedola encouraged depot owners to consider selling, restructuring, or investing in new value chains and urged them to demonstrate commitment to fair competition by pooling resources to acquire the Port Harcourt refinery, seeking success where the Nigerian National Petroleum Company Limited had failed.
He praised President Bola Tinubu for fully deregulating the downstream petroleum sector, breaking entrenched interests’ grip, and ushering in an era of transparency and competition.
