New Rules: Otedola Advises DAPPMAN on Dangote Clash

Billionaire businessman, Femi Otedola, has called on members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to accept the new realities of Nigeria’s oil sector and stop opposing the operations of the Dangote Refinery.

His remarks follow ongoing tensions between DAPPMAN and the refinery, which recently prompted government intervention.

In a statement shared on X (formerly Twitter) on Monday, Otedola said Nigeria had entered a new phase where fuel importation and depot-driven arbitrage were no longer sustainable. He warned that clinging to outdated infrastructure and benefits from the subsidy era would only lead many operators into financial distress.

Otedola, who founded DAPPMAN in 2002 to empower independent depot owners against major marketers, admitted that the model had lost relevance with the start of large-scale domestic refining. He pointed out that much of Nigeria’s four million metric tons of storage capacity now sits unused, as local supply has become both steady and efficient.

Challenging claims that depots are major employers, Otedola argued that filling stations provide far more jobs. He also dismissed proposals that Dangote Refinery should subsidize DAPPMAN to the tune of ₦1.5 trillion, describing it as an unfair cost burden that would ultimately fall on Nigerian consumers.

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Drawing a parallel with Nigeria’s cement industry, Otedola said that once local production gained momentum, infrastructure built around imports quickly became obsolete. He urged depot owners to rethink their business models by selling, restructuring, or diversifying into new value chains. As a bold alternative, he even suggested they could pool resources to acquire and manage the Port Harcourt Refinery if they truly wanted to test their competitiveness.

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“Those who fail to adapt risk not just irrelevance but bankruptcy,” Otedola cautioned. “In advanced economies, refineries are cutting down on depots or converting them into other uses. The Folawiyo Group saw the trend early and exited strategically. That is foresight. DAPPMAN had its time, but its relevance is fading fast. We need to embrace self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem — it is the solution. The sooner we accept this, the better for everyone.”