Billionaire Femi Otedola reveals how ₦2 trillion was siphoned under Jonathan’s fuel subsidy regime, hails Dangote Refinery as a turning point for Nigeria’s energy independence, and warns DAPPMAN to adapt or face extinction
Billionaire businessman and philanthropist, Femi Otedola, has made shocking revelations about the scale of fuel subsidy fraud that plagued Nigeria’s oil sector, stating that over ₦2 trillion was siphoned under the Goodluck Jonathan administration through questionable subsidy claims.
In a detailed statement on the state of Nigeria’s downstream oil sector, Otedola disclosed that he personally warned former President Jonathan about fraudulent subsidy practices orchestrated by depot owners and oil marketers, accusing them of manipulating a system that rewarded corruption over innovation.
“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN members became the primary beneficiaries. Over ₦2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation; it encouraged rent-seeking and corruption,” Otedola stated.
The billionaire, who once dominated Nigeria’s diesel supply business, stressed that credit must be given to President Bola Ahmed Tinubu for his bold decision to fully deregulate the downstream sector.
“This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery. In a sector long plagued by 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,” Otedola explained.
Otedola also heaped praises on Africa’s richest man, Aliko Dangote, describing the successful commencement of operations at the Dangote Refinery as a “historic leap for Nigeria’s energy independence.”
“We now have domestic production and local supply—efficient, reliable, and proudly Nigerian. More than just producing fuel, Aliko has elevated the entire logistics chain, purchasing 8,000 brand new CNG eco-friendly trucks. This is transformative,” he noted.
He argued that the refinery has not only ended decades of inefficiency but also eliminated the notorious Apapa gridlock caused by petroleum tanker traffic.
Taking direct aim at DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria), the group currently sparring with Dangote Refinery, Otedola recounted how he personally founded the association in 2002 to give independent depot owners a fair platform.
However, he warned that the business model that once sustained DAPPMAN is now obsolete, “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 last year to sell their depots as scrap while they still had value. With Dangote’s refinery fully operational, the old business model is crumbling.”
He dismissed claims that depots are a significant source of employment, stressing that filling stations provide far more jobs than storage depots.
Otedola predicted that depot operators who refuse to adapt will face irrelevance and possible bankruptcy. Instead of resisting change, he urged them to explore new value chains, restructure, or even acquire struggling refineries such as Port Harcourt Refinery if they truly believe in competition.
“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem—it is the solution. Let’s move forward,” he said.
Concluding his remarks, Otedola celebrated Dangote’s achievement in reshaping Africa’s energy landscape, “Africans are proud of Aliko Dangote. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.” Read More
