Nigerian billionaire Femi Otedola has claimed that approximately N2 trillion was misappropriated through dubious fuel subsidy claims during the administration of former President Goodluck Jonathan.
In a statement on Monday, Otedola supported Dangote Petroleum Refinery (DPR) amid its dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). On September 16, DAPPMAN accused DPR of market-disruptive practices, alleging that the refinery’s price reductions were intended to undermine competition rather than benefit the public.
In response, DPR claimed DAPPMAN demanded an annual N1.5 trillion subsidy to align their depot prices with DPR’s gantry rates. Otedola criticized the subsidy system, stating it was designed to favor depot owners, with DAPPMAN members reaping significant benefits.
“I warned President Jonathan that he was being misled. The subsidy system enriched depot owners, with DAPPMAN as the primary beneficiaries,” Otedola said. “Over N2 trillion was siphoned through questionable claims tied to depot licenses, fostering corruption and rent-seeking rather than transparency or innovation.”
Otedola debunked the notion that depots significantly contribute to employment, noting, “A typical depot employs about five people, including the gatekeeper, while a single filling station can employ dozens, from pump attendants to security and cleaners.”
He urged DAPPMAN to shift focus to retail outlets rather than clinging to infrastructure suited for an outdated fuel import model. “Globally, depots in places like Amsterdam or Houston serve export markets. With Nigeria refining locally, such facilities are becoming obsolete, much like bulk carriers in the cement industry after local production began,” he explained.
Otedola warned that DAPPMAN members risk bankruptcy if they fail to adapt. “They should sell, restructure, or invest in new value chains,” he suggested, adding that if DAPPMAN believes in competition, they could pool resources to acquire and revive the Port Harcourt refinery, where NNPC has struggled.
