Nigerian businessman Femi Otedola has alleged that up to two trillion naira (N2 trillion) was lost through questionable fuel subsidy payments during the administration of former President Goodluck Jonathan.
Otedola made the claim in a statement on Monday, in which he offered his support to the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). The conflict began on 16 September when DAPPMAN accused the refinery of disruptive market practices, suggesting its recent fuel price cuts were designed to weaken competitors rather than for patriotic reasons.
In response, the Dangote refinery stated that DAPPMAN had demanded an annual subsidy of N1.5 trillion to allow its members to match the refinery’s prices. Speaking on the issue, Otedola said the petrol subsidy system had been structured to favour a select few.
“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,” he said. “Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation, it encouraged rent-seeking and corruption.”
Otedola also addressed what he called “a myth that continues to be repeated,” challenging the idea that depots are significant employers. “A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners,” Otedola said. “If anything, DAPPMAN members should be focusing on owning and scaling last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us.”
He pointed to global examples to support his argument. “The global picture is instructive. Depots in Amsterdam or Houston were designed to serve export markets, especially Africa. With Nigeria now refining locally, such infrastructure is increasingly unnecessary. The same thing happened in the cement industry.”
Otedola noted that once Nigeria began local cement production, “the bulk carriers that used to dock at our ports were retired, many sold as scrap.” He warned, “The same outcome awaits fuel depots.”
The billionaire cautioned that DAPPMAN members risk becoming irrelevant or bankrupt if they fail to adapt. “Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains,” he added.
He suggested that if the marketers genuinely believed in competition, they could “pool resources to acquire the Port Harcourt refinery and attempt to succeed where the Nigerian National Petroleum Company (NNPC) Limited had failed.”
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