Otedola Defends Dangote: Why Nigeria’s Fuel Depot Model is Becoming Obsolete
Key Highlights from the Story
1️⃣ The Context – Dangote vs DAPPMAN
• Dangote Refinery is now Nigeria’s major local fuel supplier.
• Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) is in a standoff with Dangote, accusing him of unfair pricing.
• Dangote says DAPPMAN is sabotaging reforms and demanding ₦1.5 trillion yearly subsidy to cover logistics costs, which would burden consumers.
• The fight: local refining vs. old import-driven business model.
2️⃣ Otedola’s Position
• Strongly backs Dangote, calling his refinery “a historic leap for Nigeria’s energy independence.”
• Praises President Tinubu for full deregulation of the petroleum downstream sector, saying it ended subsidy fraud, smuggling, and entrenched interests.
• Criticises DAPPMAN for clinging to an outdated model built on import-driven depots and subsidy exploitation.
3️⃣ Why Otedola Thinks Depots Are Obsolete
• He founded DAPPMAN in 2002 to challenge big marketers, but says the model is no longer relevant.
• Nigeria now has over 4 million metric tons of storage capacity, mostly idle.
• With Dangote’s refinery producing locally, importing and storing fuel in depots is unnecessary.
• Employment impact:
• Depots employ ~5 people.
• Filling stations employ dozens – Otedola suggests members focus on scaling retail outlets instead.
4️⃣ The Allegations & Counter-Allegations
• DAPPMAN’s accusation: Dangote refinery sells cheaper fuel abroad but higher locally, creating unfair advantage.
• Dangote’s response: DAPPMAN members are round-tripping (buying from Togo, reselling in Nigeria) and demanding subsidies to cover their inefficiencies.
• DAPPMAN’s threat: Legal action unless Dangote retracts.
• Dangote’s stance: “See you in court, we’re ready to defend our position.”
5️⃣ Otedola’s Advice to DAPPMAN
• Stop fighting Dangote and start adapting.
• Options:
• Sell their depots before they become worthless.
• Invest in retail stations (last-mile outlets).
• Diversify into new value chains.
• Even buy the Port Harcourt Refinery if they want to prove competitiveness.
6️⃣ Bigger Picture
• Otedola compares this shift to Nigeria’s cement industry: once local production took off, importers became irrelevant.
• He warns that depot owners risk bankruptcy if they don’t adapt.
• Calls Dangote Refinery “not the problem, but the solution.”
• Says Africa should be proud of Dangote for transforming the energy sector.
Why This Matters
• For Nigeria: Dangote Refinery reduces dependency on imports, strengthens FX reserves, and creates jobs.
• For investors: Clear signal that the old subsidy-driven import model is dying.
• For consumers: Long-term promise of transparency and efficiency, though short-term price fights may continue.
Key Highlights from the Story
1️⃣ The Context – Dangote vs DAPPMAN
• Dangote Refinery is now Nigeria’s major local fuel supplier.
• Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) is in a standoff with Dangote, accusing him of unfair pricing.
• Dangote says DAPPMAN is sabotaging reforms and demanding ₦1.5 trillion yearly subsidy to cover logistics costs, which would burden consumers.
• The fight: local refining vs. old import-driven business model.
2️⃣ Otedola’s Position
• Strongly backs Dangote, calling his refinery “a historic leap for Nigeria’s energy independence.”
• Praises President Tinubu for full deregulation of the petroleum downstream sector, saying it ended subsidy fraud, smuggling, and entrenched interests.
• Criticises DAPPMAN for clinging to an outdated model built on import-driven depots and subsidy exploitation.
3️⃣ Why Otedola Thinks Depots Are Obsolete
• He founded DAPPMAN in 2002 to challenge big marketers, but says the model is no longer relevant.
• Nigeria now has over 4 million metric tons of storage capacity, mostly idle.
• With Dangote’s refinery producing locally, importing and storing fuel in depots is unnecessary.
• Employment impact:
• Depots employ ~5 people.
• Filling stations employ dozens – Otedola suggests members focus on scaling retail outlets instead.
4️⃣ The Allegations & Counter-Allegations
• DAPPMAN’s accusation: Dangote refinery sells cheaper fuel abroad but higher locally, creating unfair advantage.
• Dangote’s response: DAPPMAN members are round-tripping (buying from Togo, reselling in Nigeria) and demanding subsidies to cover their inefficiencies.
• DAPPMAN’s threat: Legal action unless Dangote retracts.
• Dangote’s stance: “See you in court, we’re ready to defend our position.”
5️⃣ Otedola’s Advice to DAPPMAN
• Stop fighting Dangote and start adapting.
• Options:
• Sell their depots before they become worthless.
• Invest in retail stations (last-mile outlets).
• Diversify into new value chains.
• Even buy the Port Harcourt Refinery if they want to prove competitiveness.
6️⃣ Bigger Picture
• Otedola compares this shift to Nigeria’s cement industry: once local production took off, importers became irrelevant.
• He warns that depot owners risk bankruptcy if they don’t adapt.
• Calls Dangote Refinery “not the problem, but the solution.”
• Says Africa should be proud of Dangote for transforming the energy sector.
Why This Matters
• For Nigeria: Dangote Refinery reduces dependency on imports, strengthens FX reserves, and creates jobs.
• For investors: Clear signal that the old subsidy-driven import model is dying.
• For consumers: Long-term promise of transparency and efficiency, though short-term price fights may continue.