By IDNN Energy Desk
Otedola Urges Depot Owners to Restructure Amid Dangote Refinery Dispute
Business mogul Femi Otedola has weighed into the dispute between depot owners and the Dangote Refinery, warning that clinging to outdated infrastructure will drive them into irrelevance.
“Aliko’s refinery is not the problem. It is the solution,”Otedola said.
Otedola advised members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to restructure or consider acquiring the Port Harcourt Refinery rather than resisting Dangote’s disruptive entry. “Aliko’s refinery is not the problem. It is the solution,” he said.
Why Otedola Intervened
The Dangote Refinery, commissioned in 2023, is transforming fuel supply by cutting out import-driven depots and deploying 4,000 CNG-powered trucks for direct distribution. Otedola, a co-founder of DAPPMAN in 2002, likened the shift to Nigeria’s cement industry, where local production eliminated bulk importers.
Shaping the Future of Oil Distribution
Otedola argued depots are now redundant, employing few workers and adding costs to consumers. He urged marketers to invest in retail stations and new value chains. While critics accused him of insensitivity, his support for Dangote underscores a looming structural shift in Nigeria’s energy landscape.
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