September 22, 2025 – FBN Holdings Chairman, Femi Otedola, has commended the progress achieved by the Dangote Refinery and the impact it is making on Nigeria’s energy sector. Otedola described the refinery as a “historic leap for Nigeria’s energy independence and economic future,” while also praising President Bola Ahmed Tinubu for his decision to fully deregulate the downstream petroleum sector, an action he said “no other leader before him had the political will to execute.”
According to Otedola, this decision has “broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery.” He noted that for years, the sector had been plagued by rent-seeking, subsidy fraud, product diversion, and smuggling, but that these reforms now create a more efficient and accountable energy market.
Despite the progress, Otedola observed that some individuals are still resisting change. “I’ve followed recent commentary around fuel supply issues and feel compelled to provide some perspective, especially as it relates to the future of this country, which remains threatened by entrenched cabals who still believe they can block the winds of reform,” he said.
He highlighted his own experience as a founder of DAPPMAN in 2002, where he worked to challenge the dominance of major marketers and give independent depot owners a fair platform to thrive. “I personally structured the group, appointing the late George Enenmoh, then MD of Ascon Oil, as Chairman, while I served as Vice Chairman and Sayyu Dantata as Secretary. At the time, depot ownership was strategic. We were filling critical supply gaps left by an inefficient system,” Otedola said.
However, he noted that times have changed, stating that most depot assets no longer reflect today’s business realities. “I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling,” he explained.
Otedola also pointed out that Zenon Oil, which pioneered the modern diesel business in Nigeria, built depots to store imported diesel when the market was import-driven, but now the gaps have been closed with local production. “We now have domestic production and local supply efficient, reliable, and proudly Nigerian,” he said, adding that the refinery has also solved logistical challenges by reducing gridlock around Apapa, Tincan, and Ibafon.
“More than just producing fuel, Aliko has elevated the entire logistics chain. He has purchased 8,000 brand new CNG eco-friendly trucks that will distribute across the country with less pollution and fewer breakdowns, unlike the aging, rickety trucks still used by some operators,” Otedola added.
He questioned DAPPMAN’s current demands, saying, “What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing. Since PFI is gone, I see no reason why Dangote Refinery should subsidize DAPPMAN with N1.5 trillion which they are asking Dangote Refinery to pay and subsequently pass this cost to consumers.”
Otedola reiterated his long-standing opposition to the fuel subsidy system, saying, “I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries. Over ₦2 trillion was siphoned through questionable claims, all tied to depot licenses.”
He also addressed claims about depot job creation, noting that their employment impact is minimal compared to filling stations. “A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners,” he explained.
Otedola urged DAPPMAN members to shift their focus from depot ownership to retail outlets and new value chains. He warned that failing to adapt could lead to bankruptcy, saying, “If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains. If they truly believe in competition, they could even come together and acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not.”
He pointed to examples of companies making strategic exits from depot ownership, citing Folawiyo Group, which sold its depot early. “DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution,” Otedola said.
He concluded by congratulating Aliko Dangote once more. “Africans are proud of you. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it,” he said.
