Dangote Vs NUPENG: Otedola Tells Depot Owners to Sell Them as Scrap

Segun Atanda/

Billionaire businessman, Femi Otedola, has waded into the Dangote Refinery’s face-off with petroleum unions and depot owners, bluntly advising members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to “sell their depots as scrap” before they become worthless.

In a no-holds-barred post on X, Otedola congratulated Aliko Dangote on the early successes of his multi-billion-dollar refinery but reserved scathing criticism for DAPPMAN, the group he once helped to establish in 2002.

“Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities,” he wrote. “I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling.”

His comments come as DAPPMAN and NUPENG are locked in a bruising battle with Dangote Refinery over fuel supply terms and alleged market dominance, with threats of strikes and lawsuits hanging over the sector.

But Otedola tore into the depot owners’ campaign, accusing them of trying to preserve “a model built on fuel imports, subsidy exploitation, and outdated infrastructure.”

He warned that their reported demand for N1.5 trillion in compensation from Dangote was nothing more than an attempt to pass inefficiency costs to Nigerians. “Since PFI is gone, I see no reason why Dangote Refinery should subsidise DAPPMAN with N1.5 trillion,” he said, adding: “If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt.”

The former Zenon Oil boss also punctured DAPPMAN’s claims about job creation, calling depots “glorified tanks” that barely employ five people, “gatekeeper included.”

By contrast, he argued, filling stations create dozens of jobs each. “What is DAPPMAN fighting for today?” Otedola asked. “To preserve a system built on subsidy arbitrage and rent-seeking? That era is fast disappearing.”

Drawing a comparison to Nigeria’s cement industry, Otedola said the fate of fuel depots is sealed. “Once Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired, many sold as scrap. The same outcome awaits fuel depots.”

He urged marketers to redirect investments into last-mile retail, restructuring, or even buying the moribund Port Harcourt Refinery if they truly believe in competition. “Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains,” he added.

Otedola also revisited the subsidy scandals of the past, recalling how he warned former President Goodluck Jonathan that the system was being abused by depot owners. “Over N2 trillion was siphoned through questionable claims, all tied to depot licenses,” he revealed. “The policy rewarded neither transparency nor innovation, it encouraged rent-seeking and corruption.”

While NUPENG and DAPPMAN continue to push back against Dangote’s dominance, Otedola insists the refinery is a national blessing. “Aliko’s refinery is not the problem. It is the solution,” he declared, before saluting Dangote for transforming the entire supply chain, including purchasing 8,000 brand-new CNG trucks to replace the “aging, rickety trucks” still used by other operators.

On a final note, he told Dangote, “My dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”