Billionaire businessman Femi Otedola has made a startling revelation about the fuel subsidy regime during former President Goodluck Jonathan’s administration. According to Otedola, he personally warned Jonathan about fraudulent activities by oil marketers, but his warnings fell on deaf ears.
In a recent statement, Otedola disclosed that the subsidy claims were often tied to depot licenses, which he believes encouraged corruption and rent-seeking rather than promoting transparency and innovation. He criticized the policy, saying it was flawed and allowed unscrupulous individuals to exploit the system.
Otedola also took the opportunity to congratulate Aliko Dangote on the success of his refinery, describing it as a significant milestone for Nigeria’s energy independence and economic future. He praised Dangote’s achievement, saying it marked a historic leap forward for the country.
The billionaire businessman’s comments have reignited the debate about fuel subsidy and the need for reforms in Nigeria’s oil and gas sector. His revelation about warning Jonathan about the fraudulent activities has raised questions about the former president’s handling of the subsidy regime.
He said, “On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria) members became the primary beneficiaries.
“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.”
But more importantly, he noted that credit must go to President Bola Tinubu for doing what no other leader before him had the political will to execute, which is the full deregulation of the downstream petroleum sector.
“In a sector long plagued by rent-seeking, subsidy fraud, product diversion, and smuggling, this reform marks a decisive break from the past and lays the foundation for a more efficient and accountable energy market. Yet despite this progress, there are still voices clinging to the old ways. Voices determined to resist change, even when it’s clear the tide has turned,” Otedola wrote.
Specifically, Otedola took on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), a group of oil marketers that has been engaged in a running battle with the Dangote Refinery in recent days.
Otedola, going down memory lane, recalled that he founded DAPPMAN 23 years ago, specifically in 2002, with a clear mission to challenge the dominance of major marketers and provide independent depot owners with a fair platform to thrive.
He, however, stated that the original players have left and those presently in the association are clinging to assets that have lost value.
He says, “But history has shown time and again: you can delay change, frustrate it, even sabotage it, but you can never stop it. I founded DAPPMAN in 2002 (23 years ago) with a clear mission, to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.
“But 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 business realities . I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling.”
