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By Tracy Moses
Nigerian billionaire, Femi Otedola, has commended Africa’s richest man, Aliko Dangote, for the strides recorded by the Dangote Refinery since its operations began, describing the project as a “landmark achievement” in Nigeria’s quest for energy security and economic transformation.
In a statement on Monday, Otedola also hailed President Bola Ahmed Tinubu for demonstrating the “political courage” to fully deregulate the downstream petroleum sector, an action he said no past administration had been able to implement.
According to him, the decision has “dismantled entrenched cartels” that for decades thrived on subsidy scams, product diversion, smuggling, and rent-seeking.
“This bold reform has ushered in a transparent, competitive and consumer-focused market. It represents a clear break from a past defined by inefficiency and corruption,” Otedola said.
The billionaire warned against what he called attempts by certain actors to undermine the progress of deregulation, insisting that while reforms can be delayed or resisted, they cannot be stopped.
Reflecting on his own involvement in the creation of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) in 2002, Otedola explained that the association was formed to give independent depot operators a level playing field in a market previously controlled by the major oil marketers. He noted that he designed the group’s structure, with the late George Enenmoh appointed Chairman, himself as Vice Chairman, and Sayyu Dantata as Secretary.
However, he maintained that the conditions that justified the formation of DAPPMAN no longer exist.
“Nigeria today has over 4 million metric tons of storage capacity, most of it redundant. With Dangote Refinery now meeting local demand, the depot-driven model has collapsed,” he stated.
Otedola, who through Zenon Oil once dominated Nigeria’s diesel market, stressed that depots were only relevant in an import-dependent era. With local refining now in place, he said depot ownership has lost strategic importance.
He faulted what he described as DAPPMAN’s unrealistic demands, particularly the push for Dangote Refinery to provide ₦1.5 trillion in subsidies to depot owners, warning that such a move would unfairly shift the burden onto consumers.
“Depots were originally established as a means to obtain PFIs from NNPC, which was the sole gasoline supplier then. That system no longer applies. Dangote Refinery should not be compelled to underwrite DAPPMAN,” he said.
The businessman disclosed that he had previously advised depot owners to sell their facilities while they still had some value, warning that clinging to outdated infrastructure could render them bankrupt.
He urged DAPPMAN members to shift focus toward retail outlets or refining investments, adding that if they are serious about competition, they should consider acquiring the Port Harcourt Refinery to prove their capacity.
Otedola also debunked the claim that depots provide mass employment, noting that most depots engage only a handful of staff compared to filling stations which support dozens of jobs.
Highlighting the broader impact of Dangote Refinery, he pointed to its acquisition of 8,000 compressed natural gas (CNG) trucks for nationwide distribution, describing the initiative as a boost to efficiency, cleaner energy, and safer logistics.
Otedola, who was honoured in 2005 as life patron of the Petroleum Tanker Drivers (PTD) Union, stressed that his position comes from decades of industry experience.
Drawing parallels with Nigeria’s cement sector, he noted that the rise of local cement production forced the obsolescence of bulk carriers that once dominated the ports, a trajectory he predicted for petroleum depots.
“DAPPMAN once served a purpose, but its relevance is now fading fast. The focus should be on building a transparent and sustainable downstream sector that aligns with Nigeria’s self-sufficiency goals,” he advised.
Ending on a lighter note, Otedola applauded Dangote’s resilience and urged him to enjoy his success.
“Africans are proud of you. My dear brother Aliko, it’s time you also go to Monaco and relax jejely like me, you’ve truly earned it,” he said.