Nigerian billionaire businessman and former Forte Oil chairman, Femi Otedola, has applauded the progress of the Dangote Refinery, describing it as a “historic leap for Nigeria’s energy independence and economic future.”
In an article sent to Nairametrics, Otedola congratulated Africa’s richest man, Aliko Dangote, on the milestones recorded since the $20 billion refinery commenced operations, stressing that the development represents more than just a boost in domestic fuel supply.
“Congratulations to my dear brother, Aliko Dangote, on the success achieved so far since the Dangote Refinery commenced operations. It is a historic leap for Nigeria’s energy independence and economic future,” Otedola said.
He further credited President Bola Ahmed Tinubu for the decisive reforms in the petroleum sector, pointing to the full deregulation of the downstream market as a turning point.
“But more importantly, credit must go to President Bola Ahmed Tinubu for doing what no other leader before him had the political will to execute: the full deregulation of the downstream petroleum sector. This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery,” he stated.
Otedola took aim at the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), a group he co-founded in 2002, accusing members of resisting change and clinging to outdated business models.
“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing,” he said. “Since PFI is gone, I see no reason why Dangote Refinery should subsidize DAPPMAN with N1.5 trillion which they are asking Dangote Refinery to pay and subsequently pass this cost to consumers.”
Reflecting on the subsidy regime, Otedola claimed depot owners were the biggest beneficiaries of the corrupt system.
“On subsidy, 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. Over ₦2 trillion was siphoned through questionable claims, all tied to depot licenses,” he alleged.
He emphasized that the business logic behind depots is fading with the advent of domestic refining capacity, likening the shift to what happened in Nigeria’s cement industry.
“Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians,” Otedola argued. “If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt.”
He advised depot owners to restructure, invest in retail outlets, or pivot into new ventures rather than resisting change.
“Even in developed markets, refinery operators are downsizing their depot footprint. Many are converting them into bonded warehouses or exiting completely. Folawiyo Group, known for its foresight and integrity, sold its depot and exited early. That is strategic thinking,” he noted.
Beyond refining, Otedola praised Dangote for transforming Nigeria’s logistics chain through investments in eco-friendly transport.
“More than just producing fuel, Aliko has elevated the entire logistics chain. He has purchased 8,000 brand new CNG eco-friendly trucks that will be distributed across the country with less pollution and fewer breakdowns, unlike the aging, rickety trucks still used by some operators,” he said.
In a lighter note, Otedola urged Dangote to take a deserved rest after achieving a project many thought impossible.
“Aliko’s refinery is not the problem; it is the solution. Let’s move forward. Africans are proud of you. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”
