Femi Otedola Warns Depot Owners as Dangote Refinery Changes Fuel Supply

Nigeria’s oil and fuel market is going through one of its biggest shifts in history, thanks to the Dangote Petroleum Refinery. The $20 billion project, now distributing petrol across 11 states with its own trucks, is changing how fuel gets to filling stations. 

While many Nigerians see this as a step forward, some depot owners and unions feel pushed aside.

One man who has stepped into the debate is billionaire businessman Femi Otedola. Known for his deep experience in the downstream sector, Otedola has publicly supported Aliko Dangote and his refinery project. 

He believes the refinery marks a new era of energy independence for Nigeria and an end to the decades of subsidy fraud, smuggling, and inefficiency.

Otedola backs Dangote and Tinubu’s reforms

Otedola praised President Bola Tinubu for fully deregulating the petroleum sector, saying the move has brought transparency, competition, and better services to consumers. He called the Dangote Refinery a “historic leap” that puts Nigeria in charge of its own fuel supply rather than depending on imports.

But while Dangote is introducing eco-friendly trucks—8,000 of them, to move fuel directly to filling stations, depot owners and unions are unhappy. 

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) says Dangote is preventing drivers from unionizing, while depot owners under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) complain that they are being sidelined.

Why Otedola is warning depot owners

Otedola has a personal history with depot owners. Back in 2002, he helped create DAPPMAN to give independent depot operators a stronger voice. But today, he admits the model is outdated. 

Nigeria now produces its own fuel locally, and depots that were once essential for imports are no longer as important. He even described the billions of liters of storage tanks sitting unused as “stranded assets.”

In his words, “You can delay change, frustrate it, even sabotage it, but you cannot stop it.” Otedola urged depot owners to face reality: their infrastructure is losing value, and unless they adapt, they could become irrelevant or even bankrupt.

Depot owners must adapt or exit

Otedola’s message is clear: depot owners must either sell, restructure, or find new opportunities. 

He reminded them that clinging to the old system will not work. He even suggested that if they truly want competition, they should consider buying the Port Harcourt Refinery instead of trying to block Dangote.

He also pointed to how Nigeria’s cement industry transformed years ago. Once the country started producing cement locally, bulk carriers used for imports became unnecessary. He predicts the same will soon happen with fuel depots.