‘Over N2Trillion Stolen Through Fraudulent Oil Subsidy Claims Under Jonathan’ –Femi Otedola

Nigerian billionaire businessman, Femi Otedola, has dropped fresh revelations on the rot in the country’s oil sector, accusing members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of clinging to a corrupt business model built on subsidy fraud and outdated infrastructure.

Otedola, in a statement, said that under former President Goodluck Jonathan’s administration, more than N2 trillion was siphoned through questionable subsidy claims.

He warned that the racket was tied to depot licenses and designed to enrich a cartel of importers at the expense of Nigerians.

“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,” Otedola said.

“Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation. It encouraged rent-seeking and corruption.”

The revelations come amid a raging dispute between Africa’s richest man, Aliko Dangote, whose $20 billion refinery has begun local fuel supply, and DAPPMAN members who have resisted the disruption to their import-driven business model.

Otedola, who noted that he founded DAPPMAN in 2002 to challenge the dominance of major oil marketers, said the group has now outlived its usefulness.

“But history has shown time and again: you can delay change, frustrate it, even sabotage it—but you can never stop it,” he declared.

“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing.”

“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” he stated.

The businessman described Dangote’s refinery as “transformative,” noting that beyond producing fuel, the company has purchased 8,000 brand new CNG eco-friendly trucks to overhaul distribution logistics across the country, unlike the rickety tankers that have dominated the sector for decades.

He argued that claims that depots generate massive employment are a myth.

“Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians,” he stated.

Otedola accused DAPPMAN members of blackmail, insisting there was no justification for their demand that Dangote subsidise them with N1.5 trillion, an amount that would eventually be passed on to Nigerian consumers.

“Zenon Oil pioneered the modern diesel business in Nigeria. We built depots to store imported diesel because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery fully operational, those gaps no longer exist,” he said.

“We now have domestic production, and local supply is efficient, reliable, and proudly Nigerian.”

According to Otedola, the “old guard” in the downstream sector must adapt or go bankrupt.

He suggested they consider converting their depots into new value chains or even acquiring the moribund Port Harcourt Refinery if they truly believe in competition.

“The same thing happened in the cement industry. Once Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired. The same outcome awaits fuel depots. If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt,” Otedola warned.

The businessman also praised President Bola Tinubu for breaking the cartel’s grip on the oil sector through full deregulation.

“This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery,” he said.