By Obinna Uballa
Billionaire businessman, Femi Otedola, has alleged that more than N2 trillion was siphoned through questionable petrol subsidy claims during the administration of former President Goodluck Jonathan, with depot licence holders emerging as the chief beneficiaries.
Otedola made the claim in a statement on Monday while defending the Dangote Petroleum Refinery (DPR) in its clash with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
On September 16, DAPPMAN accused the refinery of adopting “market-disruptive” fuel price cuts to weaken competition. But Dangote countered that the association had pushed for an annual N1.5 trillion subsidy to enable members match its depot prices.
Backing Dangote, Otedola said the subsidy regime was deliberately structured to enrich depot owners rather than ordinary Nigerians.
“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,” Otedola said.
“Over N2 trillion was siphoned through questionable claims tied to depot licences. The policy rewarded rent-seeking and corruption, not transparency or innovation.”
The billionaire also dismissed what he described as the “myth” that depots create significant jobs, noting that a typical facility employs barely five staff compared to dozens supported by a single filling station.
He urged DAPPMAN members to adapt to Nigeria’s new refining reality, warning that clinging to outdated depot models could push them into bankruptcy.
“With Nigeria now refining locally, depots built for a fuel import economy no longer serve us. The same thing happened in the cement industry when local production replaced imports – the bulk carriers vanished, many sold as scrap,” Otedola noted.
He advised depot owners to restructure, sell, or invest in new value chains, and even challenged them to pool funds to buy the Port Harcourt refinery if they believed in real competition.
“Instead of resisting progress, they should evolve or risk irrelevance,” he said.
