Billionaire businessman Femi Otedola has alleged that more than ₦2 trillion was siphoned through questionable fuel subsidy claims during the administration of former President Goodluck Jonathan.
Otedola made the claim in a statement on Monday, where he voiced support for the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
DAPPMAN had accused the refinery of engaging in market-disruptive practices, alleging that its fuel price reductions were intended to weaken competition. The refinery countered by accusing DAPPMAN of demanding ₦1.5 trillion annually in subsidies to match its gantry prices.
According to Otedola, the subsidy regime was deliberately designed to benefit depot owners.
“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries. Over ₦2 trillion was siphoned through questionable claims, all tied to depot licenses,” he stated.
The businessman further argued that depots contribute little to job creation compared to filling stations, which employ dozens of Nigerians. He also said depots had outlived their relevance in the downstream oil sector.
Otedola dismissed DAPPMAN’s alleged demand for Dangote Refinery to subsidise depot owners with ₦1.5 trillion, stressing that such a move would only transfer costs to consumers.
He advised depot owners to adapt to the evolving oil and gas market by restructuring, selling, or investing in new value chains, warning that resistance to change could push them into bankruptcy.
Drawing parallels with Nigeria’s cement industry, Otedola noted that the shift to local production rendered import-dependent infrastructure obsolete, and suggested a similar fate awaits depot operators if they fail to innovate.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
