Otedola has alleged N2 Trillion subsidy fraud under Jonathan and hailed Dangote Refinery as Game-Changer.
NewsOnline Nigeria reports that Billionaire businessman Femi Otedola has alleged that over N2 trillion was siphoned through questionable fuel subsidy claims during the administration of former President Goodluck Jonathan, despite his personal warnings to the ex-leader about fraudulent oil marketers.
In a detailed statement on Nigeria’s downstream oil and gas sector, Otedola recalled that the subsidy system was manipulated by depot owners and members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), enriching a select few while encouraging corruption and inefficiency.
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“Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation; it encouraged rent-seeking and corruption,” Otedola said.
Praise for Tinubu’s Deregulation and Dangote’s Refinery
Otedola commended President Bola Tinubu for showing rare political will by fully deregulating the downstream petroleum sector, describing it as a historic break from decades of fraud, subsidy exploitation, and smuggling. He also celebrated the strides of Aliko Dangote following the commencement of operations at the Dangote Refinery, calling it a “transformative leap” for Nigeria’s energy independence.
According to him, the refinery not only ensures local supply but also eliminates the gridlock in Apapa, Tincan, and Ibafon while introducing eco-friendly distribution through 8,000 new CNG-powered trucks.
Clash with DAPPMAN
Otedola took a swipe at DAPPMAN, which recently clashed with the Dangote Refinery, accusing the group of clinging to outdated business models. He reminded the public that he founded DAPPMAN in 2002 to challenge major marketers but argued that times have changed.
“Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s realities. With local refining now in place, the old business model is crumbling,” he stated, advising depot owners to sell their facilities “as scrap” rather than demand subsidies from Dangote Refinery.
He further argued that depots, contrary to claims, create minimal jobs compared to filling stations and urged DAPPMAN members to shift focus toward retail and new value chains.
Lessons from Cement Industry
Drawing a parallel, Otedola noted that once Nigeria began producing cement locally, the import-driven model collapsed, leaving many bulk carriers obsolete. He warned depot owners that the same fate awaited them unless they restructured or diversified.
“DAPPMAN had its place, but today, its relevance is fast fading. Aliko’s refinery is not the problem. It is the solution,” he stressed.
Concluding on a lighter note, Otedola hailed Dangote’s efforts:
“And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”
