Billionaire businessman Femi Otedola has accused some oil marketers of exploiting Nigeria’s petrol subsidy system during the administration of former President Goodluck Jonathan, alleging that over N2 trillion was looted through fraudulent claims tied to depot licences.
Otedola made the revelation while throwing his weight behind the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). The marketers recently accused Dangote of slashing pump prices to distort the market. Dangote, however, dismissed the claims, insisting the group had lobbied for an annual subsidy of N1.5 trillion to enable them to compete.
Sharing his perspective, Otedola recalled warning Jonathan about the loopholes in the subsidy scheme.
“The system was designed to benefit depot owners. Over N2 trillion was siphoned through questionable claims tied to depot licences. The policy promoted rent-seeking and corruption instead of transparency and innovation,” he said.
The billionaire also dismissed the claim that depots create massive employment, describing it as a “myth.” According to him, a typical depot employs only about five people including a gatekeeper while filling stations provide more jobs for attendants, cashiers, security guards, and cleaners.
He advised depot owners to embrace change, stressing that their current model is outdated. Otedola drew parallels with Nigeria’s cement industry, where bulk carriers became irrelevant after the country ramped up local production.
“The same fate awaits fuel depots. If members fail to adapt, they risk becoming irrelevant or even bankrupt,” he warned.
Otedola urged marketers to prove their commitment to fair competition by exploring new value chains. He even challenged them to pool resources and acquire the Port Harcourt refinery, to succeed where the NNPC had struggled.
