Nigeria’s billionaire businessman, Femi Otedola, has weighed in on the ongoing fuel supply dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), urging the association to “innovate or perish.”
Otedola, in a statement on the state of the downstream oil and gas sector, said he had followed recent debates closely and felt compelled to share his perspective on the future of Nigeria’s energy landscape. He congratulated Aliko Dangote on the refinery’s achievements since it began operations, describing it as a “historic leap” toward energy independence and economic transformation.
He warned that Nigeria’s progress remained under threat from entrenched cabals resistant to change, but stressed that “history has shown time and again that change can only be delayed, never stopped.”
Reflecting on history, Otedola recalled founding DAPPMAN in 2002, alongside the late George Enenmoh (Chairman), Sayyu Dantata (Secretary), while he served as Vice Chairman. The association, he said, was created to challenge the dominance of major marketers and provide opportunities for independent depot owners. At the time, depot ownership was strategic, helping to bridge critical supply gaps in an inefficient system.
However, Otedola noted that the realities have shifted:
- Many original players have exited the scene.
- Those remaining are “clinging to assets that no longer reflect today’s business realities.”
- Nigeria now has over 4 million metric tons of storage capacity, much of it idle.
- With Dangote Refinery supplying fuel locally, the old import-driven business model has collapsed.
He revealed that he had advised some members last year to sell their depots “as scrap while they still had value.”
“Zenon Oil pioneered the modern diesel business in Nigeria and grew to become the largest supplier in the country. We built depots because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery now operational, those gaps no longer exist,” he explained.
Beyond production, Otedola praised Dangote’s investment in logistics, including 8,000 new eco-friendly CNG trucks for nationwide distribution. He highlighted the benefits of reduced pollution, fewer breakdowns, and the elimination of traffic gridlock in Apapa, Ibafon, and Ijora caused by fuel truck congestion.
According to him, this marks a new era of efficiency, reliability, and pride in locally produced fuel — one that requires innovation and adaptation from all stakeholders.
