Over N2trn Lost to Dubious Subsidy Claims Under Former President Goodluck Jonathan’s Administration — Businessman Femi Otedola

Billionaire businessman, Femi Otedola, has alleged that more than ₦2 trillion was siphoned through questionable petrol subsidy claims during the administration of former President Goodluck Jonathan.

In a statement on Monday, Otedola backed the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

DAPPMAN had accused the refinery of destabilizing the market with its fuel price cuts, but Dangote countered, claiming the group demanded an annual subsidy of ₦1.5 trillion to enable members match its depot prices.

Otedola, however, maintained that the subsidy regime was deliberately structured to benefit depot owners, making DAPPMAN members the biggest beneficiaries.

“I warned President Jonathan at the time that he was being misled. The system encouraged rent-seeking and corruption. Over ₦2 trillion was siphoned through dubious claims tied to depot licences,” he said.

He further dismissed the notion that depots significantly create jobs, noting that a typical facility employs only a handful of people, unlike filling stations that hire dozens.

Otedola urged DAPPMAN members to shift their focus to retail operations rather than holding on to depots designed for an import-driven fuel economy, which, according to him, has become redundant with Nigeria now refining locally.

He likened the development to the transformation of Nigeria’s cement industry, where reliance on import terminals gave way to domestic production.

Dangote Refinery dares DAPPMAN to go to court over subsidy dispute.

Dangote Petroleum Refinery has said it is fully prepared to defend its position in court against the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), declaring that any party dissatisfied with its recent publication is entitled to pursue redress through the appropriate legal channels rather than resorting to ultimatums.

Dangote Refinery: Change Has Come to the Oil Sector, Nigerian Economy, Otedola Tells DAPPMAN.

Nigeria’s billionaire businessman, Mr Femi Otedola, yesterday waded into the ongoing fuel supply disagreement between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), advising the association to innovate or perish

The philanthropist stressed that he had followed the debate around the fuel supply issues between both parties recently, noting that he felt compelled to provide some perspective, especially as it relates to the future of the country.

In a statement on recent issues in the oil and gas sector, especially in the downstream, Otedola also congratulated Aliko Dangote on the success achieved so far since his refinery commenced operations, describing it as a historic leap for Nigeria’s energy independence and economic future.
Otedola posited that Nigeria remains threatened by entrenched cabals who still believe they can resist change, but maintained that history has shown time and again that change can only be delayed, but never halted.

Dangote Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of seeking an annual subsidy of N1.505 trillion to enable their members to match depot prices with the refinery’s gantry prices.

In a statement, the refinery explained that the figure was based on Nigeria’s daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO).

According to the management, the marketers requested a discount of N70 per litre on coastal freight, NIMASA, NPA, and related charges, as well as an additional N5 per litre for pumping products into vessels for transportation to depots in Apapa.

Dangote Refinery, however, insisted it would not raise gantry prices or absorb the cost, stressing that it would not reintroduce a subsidy system that previously cost Nigeria trillions of naira. The company urged marketers to instead lift products directly from its gantry to benefit from its logistics-free initiative.