Billionaire businessman, Femi Otedola, has alleged that more than N2 trillion was looted through fraudulent petrol subsidy claims during the administration of former President Goodluck Jonathan, with depot licence holders emerging as the main beneficiaries.
Otedola made the disclosure in a statement on Monday while backing the Dangote Petroleum Refinery (DPR) in its dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
DAPPMAN had accused Dangote of “market-disruptive” fuel price cuts, but the refinery countered that the group pushed for an annual subsidy of N1.5 trillion to help members match its gantry prices.
According to Otedola, the subsidy system was deliberately structured to enrich depot owners.
“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,” he said.
“Over N2 trillion was siphoned through questionable claims tied to depot licences. The policy encouraged corruption and rent-seeking, not transparency or innovation.”
The billionaire also dismissed claims that depots provide major employment, stressing that most facilities employ only a handful of people, while a single filling station supports dozens of jobs.
Warning that clinging to outdated business models could drive depot owners into bankruptcy, Otedola urged them to adapt to Nigeria’s new refining reality.
“With Nigeria refining locally, depots built for an import economy no longer serve us. Instead of resisting progress, they should restructure, sell, or invest in new value chains,” he said.
He even challenged them to pool funds to buy the Port Harcourt refinery if they truly believed in competition.
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