Billionaire businessman Femi Otedola has accused depot owners of exploiting Nigeria’s petrol subsidy system during the administration of former President Goodluck Jonathan, alleging that more than N2 trillion was siphoned through questionable claims tied to depot licences.
Otedola issued the statement while backing the Dangote Petroleum Refinery in its ongoing clash with the Depot and Petroleum Products Marketers Association of Nigeria. The marketers had, on September 16, accused the refinery of engaging in market-disruptive practices by slashing pump prices to weaken competition rather than serve the national interest. Dangote Refinery rejected the claims, insisting that the association had demanded an annual subsidy of N1.5 trillion to help members match its gantry prices at their depots.
“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and members of the association became the primary beneficiaries,” Otedola said. “Over N2 trillion was siphoned through questionable claims all tied to depot licences. The policy rewarded neither transparency nor innovation, it encouraged rent seeking and corruption.”
The billionaire also dismissed what he called the “myth” that depots create significant employment, arguing that a typical depot employs no more than five people, including the gatekeeper, compared to filling stations that provide jobs for attendants, cashiers, security guards and cleaners.
He advised the association to move away from facilities he described as obsolete and out of touch with Nigeria’s economic reality. To drive home his point, he pointed to the cement industry, where bulk carriers became redundant after the country ramped up local production.
“The same outcome awaits fuel depots. If the members do not adapt, they risk becoming irrelevant and possibly bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains,” he said.
Otedola urged depot owners to prove their commitment to fair competition by pooling their resources to acquire the Port Harcourt refinery and attempt to succeed where the Nigerian National Petroleum Company Limited had failed.
