Aliko Dangote and Femi Otedola

Business heavyweight throws his support behind Nigeria’s largest refinery

Billionaire businessman Femi Otedola has thrown his weight behind Africa’s richest man, Aliko Dangote, as the Dangote Refinery faces a heated dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). In a statement released on Sunday, Otedola hailed the $20 billion refinery as a “historic leap” for Nigeria’s energy independence and a turning point for the country’s downstream petroleum sector.

Praising deregulation and energy independence

Otedola credited President Bola Ahmed Tinubu’s full deregulation of the downstream petroleum sector for breaking the grip of entrenched interests and ushering in transparency, competition and customer-focused service. He noted that Nigeria’s petroleum market had long been plagued by rent-seeking, subsidy fraud, and smuggling, but that local refining now offered a chance to reset the system.

“This reform marks a decisive break from the past and lays the foundation for a more efficient and accountable energy market,” he said.

Criticism of DAPPMAN, which he founded

In a striking admission, Otedola revealed that he founded DAPPMAN in 2002 to give independent depot owners a platform to thrive against major marketers. He said the group’s original purpose — filling critical supply gaps — no longer applied in today’s market.

“Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities,” he said, adding that he advised members last year to sell their depots while they still had value.

He accused DAPPMAN of trying to preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure, and criticized its reported demand for Dangote Refinery to absorb ₦1.5 trillion in logistics costs.

Call for a shift to retail and new value chains

Otedola urged depot owners to pivot to last-mile retail outlets — which create more jobs — rather than relying on storage tanks built for a fuel-import economy that no longer exists. He drew parallels with Nigeria’s cement industry, where import-based logistics collapsed once local production took off.

“If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt,” he warned, suggesting the group consider acquiring refineries or investing in new value chains.

Dangote as “solution, not the problem”

Concluding his statement, Otedola praised Dangote’s courage in transforming Nigeria’s downstream sector. “Aliko’s refinery is not the problem. It is the solution,” he said.

With the Dangote Refinery now supplying fuel locally, Otedola believes Nigeria is entering a new era of energy self-sufficiency one where entrenched cabals must either innovate or exit the stage.