Nigerian Depot Owners Deny Accusations of Hindering Local Refineries
Despite accusations that they are intentionally stifling the operations of local refineries in Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has vehemently denied the claims, dismissing them as absurd.
In an interview, DAPPMAN Executive Secretary Olufemi Adewole emphasized that the association’s primary objective is to ensure the seamless supply and distribution of petroleum products across Nigeria. He highlighted the benefits of working with local refineries, citing the potential to avoid the arduous process of sourcing foreign exchange for trading activities and reduce pressure on the naira currency.
Adewole also countered claims that depot owners contribute little value to the fuel distribution chain, explaining that they serve as essential off-takers of fuel volumes imported in ships, paid for in foreign exchange, and distributed to branded retail outlets and independent retailers. Many depots, he noted, also manage fleets of tanker trucks to ensure efficient distribution, debunking the notion that they simply inflate prices.
DAPPMAN members have already started patronizing the Dangote refinery, which has recently commenced operations. Reacting to the commencement, Adewole expressed enthusiasm and optimism, stressing that the association is committed to leveraging the opportunities presented by the refinery for the benefit of the Nigerian consumer.
As the country continues to navigate challenges in the oil and gas industry, the role of depot owners in the petroleum value chain remains crucial. With numerous accusations and counter-accusations, it is essential to understand their perspectives and contributions to the sector’s functioning.
In conclusion, DAPPMAN’s denial of claims that they are hindering the operations of local refineries highlights their commitment to ensuring the smooth supply and distribution of petroleum products in Nigeria. As the country forges ahead with plans for increased local refining capacity, the important role of depot owners in the energy sector is likely to remain a critical talking point.
