- DAPPMAN must embrace change to remain relevant in Nigeria’s evolving energy landscape.
- Dangote Refinery signals a new era of efficiency, transparency, and energy independence.
Femi Otedola, a respected entrepreneur and philanthropist, has urged the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to accept innovation and seize new opportunities. According to him, DAPPMAN must embrace change or risk collapse due to Nigeria’s energy transformation.
He noted that the ongoing dispute between the Dangote Refinery and DAPPMAN has highlighted a deeper challenge. While Aliko Dangote’s refinery signals Nigeria’s march towards energy independence, depot operators appear stuck in outdated models. Otedola stressed that history has shown repeatedly that change can only be delayed, never stopped.
Drawing from his own experience, he recalled founding DAPPMAN in 2002 with a mission to give independent depot owners a fair platform. At the time, depots were crucial for filling gaps left by inefficiencies in the downstream sector. However, the business landscape has shifted. Nigeria now has efficient domestic refining capacity, with storage infrastructure largely idle.
Otedola emphasised that many depots have lost relevance. Last year, he advised some operators to sell their depots as scrap while they still had value. With Dangote Refinery meeting local demand, the old model of fuel importation has crumbled. Furthermore, the refinery’s 8,000 eco-friendly trucks have redefined distribution, offering a cleaner and more efficient logistics chain.
He rejected claims that depots generate large-scale employment. Instead, he argued that filling stations provide far more jobs for Nigerians. Thus, he urged DAPPMAN members to focus on retail outlets or invest in new value chains. According to him, refusing to adapt will only accelerate their decline.
Otedola noted that depots in places like Amsterdam or Houston serve export markets globally. Nigeria, however, is now refining locally, reducing the need for such facilities. He compared the shift to Nigeria’s cement industry, where local production rendered import-dependent infrastructure obsolete.
He credited President Bola Tinubu’s deregulation of the downstream sector as a decisive reform. The move has dismantled entrenched interests and introduced greater transparency and competition. Still, he warned, clinging to outdated privileges would only lead to irrelevance. Otedola reminded stakeholders that DAPPMAN must embrace change and align with a new era of efficiency, transparency, and sustainable value creation.