In a statement, Otedola disclosed that more than N2 trillion was siphoned through questionable subsidy claims under the administration of former President Goodluck Jonathan.
Nigerian billionaire entrepreneur, Femi Otedola, has made public new revelations regarding the widespread corruption in the nation’s oil sector, specifically alleging that members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) are perpetuating a corrupt business model founded on subsidy fraud and outdated infrastructure.
According to Otedola, the administration of former President Goodluck Jonathan saw the misappropriation of over N2 trillion through dubious subsidy claims.
He advised that the racket was connected to depot licenses and designed to enrich a cartel of importers at Nigerians’ expense.
“I personally advised President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries,” Otedola said.
“Over N2 trillion was siphoned through questionable claims, all connected to depot licenses.
The policy rewarded neither transparency nor innovation. It encouraged rent-seeking and corruption.”
Amidst a heated dispute between Aliko Dangote, Africa’s wealthiest individual, whose $20 billion refinery has commenced local fuel supply, and DAPPMAN members resisting disruption to their import-driven business model, new revelations have emerged. Otedola, who founded DAPPMAN in 2002 to challenge major oil marketers’ dominance, now asserts that the group has outlived its usefulness.
As evidenced by history, change may be slowed, impeded, or disrupted, but it is impossible to stop it entirely,” he declared.
What is DAPPMAN advocating for today? Is it to preserve a model reliant on fuel imports, subsidy exploitation, and outdated infrastructure? That era is rapidly disappearing.
DAPPMAN is losing relevance. We need to discard outdated privileges and focus on a new era defined by self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the challenge; it is the remedy. Let us progress.
The businessman characterized Dangote’s refinery as “transformative”, observing that beyond fuel production, the company has acquired 8,000 new CNG eco-friendly trucks to revamp distribution logistics nationwide, unlike the antiquated tankers that have dominated the sector for decades.
He posited that claims of depots generating substantial employment are a myth.
The businessman characterized Dangote’s refinery as “transformative”, observing that, aside from fuel production, the company has procured 8,000 new CNG eco-friendly trucks to revamp distribution logistics nationwide, unlike the antiquated tankers that have dominated the sector for decades.
He further stated that claims of depots generating substantial employment are a myth.
Zenon Oil was at the forefront of pioneering the modern diesel business in Nigeria.
We developed depots for storing imported diesel, as the market was driven by imports and plagued by inefficiencies.
Nevertheless, Dangote’s fully operational refinery has eliminated these gaps,” he remarked.
“Domestic production has become a reality, and local supply is efficient, reliable, and quintessentially Nigerian.”
According to Otedola, the traditional downstream sector players must adapt or face bankruptcy.
He recommended exploring alternative value chains by repurposing their depots or acquiring the dormant Port Harcourt Refinery, if they genuinely support competition.
A similar scenario unfolded in the cement industry. Once Nigeria commenced local cement production, the bulk carriers that formerly docked at our ports were retired.
A comparable fate awaits fuel depots. If DAPPMAN members fail to adapt, they risk becoming obsolete and potentially facing bankruptcy,” Otedola cautioned.
The businessman applauded President Bola Tinubu for breaking the cartel’s hold on the oil sector through complete deregulation.
“This singular act has eliminated the stranglehold of entrenched interests, introducing an era of transparency, robust competition, and customer-focused service delivery,” he asserted.
The businessman applauded President Bola Tinubu for breaking the cartel’s hold on the oil sector through complete deregulation.
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