Billionaire investor Femi Otedola has warned depot owners under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that their business model is unsustainable in the wake of the Dangote Refinery’s operations, stressing that they must pivot to retail or refining to remain relevant.
Otedola, who founded DAPPMAN in 2002, said the association was established to provide independent depot operators with a platform to compete with major marketers in an import-driven market.
However, he stated that the reality has changed, and the survival of depot owners now depends on adapting to Nigeria’s refining revolution.
“Depots were strategic when Nigeria relied on imports. Today, they are outdated. Members clinging to idle tanks risk extinction. The future lies in last-mile retail distribution and refining investments, not in preserving a broken model,” Otedola said.
He urged operators to consider new opportunities, including acquisitions of refining assets, instead of lobbying for concessions from the Dangote Refinery.
“If DAPPMAN members truly believe in competition, they could come together and acquire the Port Harcourt Refinery and test their efficiency,” he added.
According to Otedola, Nigeria’s storage capacity now exceeds 4 million metric tons, much of which is underutilised.
With the Dangote Refinery supplying fuel locally and deploying 8,000 CNG-powered trucks for nationwide distribution, he argued that depots have lost their strategic relevance.
He also dismissed the notion that depots generate significant employment, noting that “a typical depot employs fewer than five people, while filling stations create jobs for dozens.”
Industry analysts say Otedola’s remarks highlight a structural shift in Nigeria’s downstream sector, where domestic refining and modern logistics are replacing decades of dependency on imports and storage depots.