- ‘Dangote Refinery Is the Future, Move On’ – Otedola Tells DAPPMAN
- Dangote Refinery praised for boosting local fuel supply
- Warns DAPPMAN: adapt or risk obsolescence
Femi Otedola has declared that the traditional depot-based fuel business model will soon be irrelevant due to Dangote Refinery’s operations.
According to Eko Hot Blog, Otedola, a prominent oil magnate, said he launched the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) in 2002 to challenge dominance in fuel marketing. But he stated the downstream oil scene has changed drastically with Dangote’s refinery now producing fuel locally, filling gaps that used to depend heavily on imports.
He said: “Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities … with the Dangote Refinery now supplying fuel locally, the old business model is crumbling.”
Otedola argued that Nigeria now has over 4 million metric tons of storage capacity much of it unused pointing out that depots constructed for an import-driven system are increasingly surplus. He urged DAPPMAN members to let go of legacy infrastructure, restructure, or invest in new areas like last-mile retail outlets.
He also commended Aliko Dangote, saying the refinery isn’t just producing fuel but transforming logistics. Otedola noted the acquisition of 8,000 modern CNG trucks by Dangote, designed for greener, more efficient distribution, which he sees as evidence of innovation that depot owners must respond to.
Otedola warned that those who do not adapt risk becoming irrelevant or bankrupt. He compared the current sector shift to what happened in the cement industry once local production took off: many importers and old infrastructure lost value.
He also drew attention to subsidy abuses of the past, asserting that depot licenses under previous regimes fed into massive fuel subsidy fraud. He said such subsidy systems no longer apply, especially now that Dangote’s refinery provides domestic supply at scale.
Otedola concluded his remarks by praising President Bola Tinubu for enabling the reforms, especially deregulation of the downstream sector, which he believes has unlocked competition, allowed for price transparency, and given Nigerians a more stable energy future.
