LAGOS, Nigeria — Nigerian billionaire Femi Otedola has alleged that more than ₦2 trillion was siphoned during the administration of former President Goodluck Jonathan through questionable petrol subsidy claims tied to depot licences.
In a statement issued on Monday, September 22, 2025, Otedola weighed in on the ongoing dispute between the Dangote Petroleum Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
The rift escalated earlier this month after DAPPMAN accused the refinery of engaging in market-disruptive practices, claiming its fuel price cuts were designed to undercut competitors rather than serve national interests.
The refinery, in response, said DAPPMAN members had allegedly demanded an annual subsidy of N1.5 trillion to match its gantry prices at their depots — a charge the group has denied.
Otedola, a long-time critic of the subsidy regime, said the system was deliberately structured to benefit depot owners, with DAPPMAN emerging as the key beneficiary.
“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 licences. The policy rewarded neither transparency nor innovation, it encouraged rent-seeking and corruption,” he added.
Challenging what he called a persistent misconception, the businessman argued that depots contribute little to employment compared with retail outlets.
“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.
He advised DAPPMAN members to adapt to changes brought about by domestic refining and move away from a reliance on import-based infrastructure.
“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 said.
Drawing parallels with the cement industry, Otedola noted that the shift to local production had rendered bulk carriers at Nigerian ports obsolete.
“The same outcome awaits fuel depots,” he said.
“Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains.”
He further suggested that if DAPPMAN members genuinely believed in competition, they could pool resources to acquire the Port Harcourt refinery and attempt to achieve what the Nigerian National Petroleum Company Limited had been unable to deliver.
