By IDNN Business Desk
Nigerian billionaire Femi Otedola has warned the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that their business model is obsolete in the wake of the Dangote Refinery.
In a statement, Otedola said depots were built to fill supply gaps during an era of imports and subsidies, but Dangote’s 650,000 bpd refinery has changed the landscape.
“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing,” Otedola argued.
How the Old Model Collapsed
Otedola recalled founding DAPPMAN in 2002 to give independents a fair platform, but stressed that history has moved on. He compared the shift to Nigeria’s cement industry, which saw imports collapse once local production scaled up.
The End of Depot Privileges
He urged depot owners to sell, restructure, or pivot to retail, warning that resistance to Dangote’s model could bankrupt them. Analysts say the intervention bolsters Tinubu’s deregulation push, while consolidating Dangote’s dominance in the energy market.
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