Businessman and billionaire Femi Otedola has weighed in on the ongoing dispute between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Dangote Refinery. He advised DAPPMAN to restructure and consider acquiring the Port Harcourt Refinery to remain relevant in the downstream business, rather than resisting progress.
The Dangote Refinery, commissioned in May 2023, has been at the centre of controversy. DAPPMAN accuses it of attempting to monopolise the downstream sector, claiming that Dangote’s continual slashing of petrol‑pump prices is a strategy to sideline other marketers. The refinery’s purchase of 4,000 compressed natural gas trucks for direct distribution of petrol to filling stations nationwide has also been a point of contention.
Otedola, who founded DAPPMAN in 2002, said the era of owning depots for petrol importation is becoming outdated now that the Dangote Refinery supplies fuel locally. He noted that the old business model is crumbling and that DAPPMAN members should focus on owning and scaling last‑mile retail outlets rather than clinging to tanks built for a fuel‑import economy that no longer serves the country.
The billionaire congratulated Aliko Dangote and the Bola Tinubu administration for their investments in the downstream sector, calling it a historic leap for Nigeria’s energy independence and economic future. He also commended President Tinubu for fully deregulating the downstream petroleum sector, which he said has broken the grip of entrenched interests and ushered in a new era of transparency and healthy competition.
Reflecting on his years as DAPPMAN’s founder, Otedola noted that the group’s original mission was to challenge the dominance of major marketers and give independent depot owners a fair platform to thrive. He added that times have changed, many original players have exited, and those remaining are clinging to assets that no longer reflect today’s business realities.
The operation of the Dangote Refinery is expected to have a significant impact on the Nigerian economy, including the elimination of gridlock around the Ibafon, Tincan and Apapa areas. Its use of eco‑friendly trucks for distribution should also reduce pollution and breakdowns. Otedola’s comments come as the Nigerian government continues to navigate the complexities of the downstream sector, focusing on increasing transparency and efficiency.
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