Nigerian billionaire and energy magnate Femi Otedola has waded into the ongoing clash between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), delivering strong words against his former association and urging depot owners to embrace a new reality or risk bankruptcy.
Otedola, who founded DAPPMAN in 2002 as a platform for independent depot owners to challenge the dominance of major oil marketers, said the association has lost touch with present-day realities of Nigeria’s petroleum market. According to him, many members are “clinging to assets that no longer reflect today’s business realities,” adding that storage depots are fast becoming obsolete in the new downstream structure.
The billionaire openly threw his weight behind Aliko Dangote and his $20 billion refinery, describing the facility as a “historic leap for Nigeria’s energy independence and economic future.” He argued that full deregulation of the downstream sector, implemented under President Bola Ahmed Tinubu, has broken “the grip of entrenched interests … ushering in transparency, healthy competition, and customer-centric service delivery.”
Otedola condemned DAPPMAN’s recent demand that Dangote subsidise them with ₦1.5 trillion, calling it an unfair burden that would ultimately be passed on to Nigerian consumers. He also dismissed claims that depots contribute significantly to employment, noting that “a typical depot employs perhaps five people, including the gatekeeper, while filling stations employ pump attendants, cashiers, security, and cleaners, creating far more jobs.”
In his remarks, Otedola stressed that Nigeria already has over 4 million metric tons of storage capacity, much of which lies idle. He warned depot owners that without urgent restructuring, they would “not only become irrelevant, they may go bankrupt.” Last year, he advised them to sell their facilities as scrap while they still held value.
Instead of fighting the Dangote Refinery, Otedola urged DAPPMAN members to focus on scaling last-mile retail outlets and modern fuel stations. He also suggested they could consider acquiring assets like the Port Harcourt Refinery if they truly wanted to compete in the refining space.
Beyond refining, he hailed the Dangote Group’s deployment of 8,000 compressed natural gas (CNG) trucks as a game-changer for Nigeria’s logistics system, citing its benefits in easing port congestion, cutting carbon emissions, and strengthening the nation’s energy transition drive.
With the Dangote Refinery set to reshape Nigeria’s energy landscape, Otedola’s comments reflect a deep rift between old depot-based marketers and the country’s new refining reality. His blunt warning leaves depot operators at a crossroads: either adapt to a retail-driven, competitive market, or fade into irrelevance.
