Otedola Backs Dangote Refinery, Exposes Subsidy Fraud That Gulped N2 Trillion

Nigerian billionaire businessman, Femi Otedola, has thrown his weight behind the Dangote Petroleum Refinery in its ongoing tussle with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), while making explosive revelations about how the petrol subsidy regime under former President Goodluck Jonathan was exploited to siphon over N2 trillion.

In a strongly worded statement issued on Monday, Otedola said the subsidy framework was deliberately structured to enrich depot owners—DAPPMAN members—at the expense of Nigerians and national development. “I personally warned President Goodluck Jonathan that he was being misled,” Otedola disclosed. “The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries. Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation; it encouraged rent-seeking and corruption.”

The controversy was triggered on September 16, when DAPPMAN accused the Dangote refinery of engaging in “market-disruptive practices.” The association claimed that the refinery’s recent fuel price reductions were strategically timed to cripple competition rather than serve patriotic motives. Dangote refinery, in a counter-statement, alleged that DAPPMAN had demanded an annual subsidy of N1.5 trillion to enable its members match the refinery’s gantry prices—a demand Otedola described as both unrealistic and outdated.

“The world has moved on,” Otedola said. “Depots were designed for an import-dependent economy. With Nigeria refining locally, such infrastructure is increasingly unnecessary. The same thing happened in the cement industry—once we started producing locally, bulk carriers that used to dock at our ports were retired and sold as scrap. The same outcome awaits fuel depots.”

The billionaire also challenged what he called a persistent “myth” surrounding the role of depots in job creation. “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 argued. “If anything, DAPPMAN members should focus on last-mile retail outlets, not cling to tanks built for an economy that no longer exists.”

Otedola warned that depot owners risked obsolescence if they fail to evolve. Instead of resisting progress, he urged them to restructure, sell off redundant assets, or channel resources into new value chains. “Rather than fighting the inevitable, they should explore opportunities in refining, retail, or logistics. If they truly believe in competition, nothing stops them from pooling resources to acquire the Port Harcourt refinery and succeeding where NNPC has failed,” he said.

Otedola’s intervention underscores the seismic changes reshaping Nigeria’s downstream oil sector. With the Dangote refinery now operational, the old subsidy-driven import economy is fast collapsing. The battle between entrenched interests and new realities could determine not just the survival of DAPPMAN members, but the long-term stability of Nigeria’s petroleum market.