Billionaire businessman, Femi Otedola, has alleged that over N2 trillion was siphoned through dubious petrol subsidy claims during the administration of former President Goodluck Jonathan, with depot licences serving as the primary loophole for the abuse.
Otedola made the revelation while throwing his support behind the Dangote Petroleum Refinery in its ongoing face-off with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
Otedola Warns Against Subsidy Abuse
In a statement, Otedola said he had personally cautioned former President Jonathan that the subsidy framework was designed to enrich depot owners at the expense of transparency and innovation.
“Over N2 trillion was siphoned through questionable claims all tied to depot licences. The system was built to benefit depot owners and became a breeding ground for corruption,” he said.
He added that the claim that depots create jobs was misleading, noting that most employ only a handful of staff, unlike filling stations that provide direct employment for dozens of Nigerians.
Call for Industry Reform
The business mogul urged members of DAPPMAN to adapt to the new market realities instead of holding on to “obsolete facilities” that no longer serve Nigeria’s economic interests.
He drew parallels with the cement industry, where bulk carriers became irrelevant after Nigeria turned into a self-sufficient producer.
“The same fate awaits fuel depots. If members refuse to evolve, they risk becoming irrelevant or bankrupt. Instead of resisting progress, they should restructure, sell, or invest in new value chains,” he advised.
Otedola further challenged the association to prove its commitment to genuine competition by pooling resources to acquire the Port Harcourt refinery and attempt to succeed where the Nigerian National Petroleum Company Limited (NNPCL) had failed.