Business mogul, Femi Otedola, has urged members of the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, to embrace change in the downstream oil sector and stop resisting the operations of the Dangote Refinery.

The statement comes amid dispute between DAPPMAN and Dangote refinery, which has seen the intervention of the Nigerian government.

However, Otedola, in a statement posted on X on Monday, said the era of fuel importation and depot-based arbitrage is over, stressing that holding on to outdated infrastructure and subsidy-era benefits would only push many operators into irrelevance and bankruptcy.

He recalled founding DAPPMAN in 2002 to give independent depot owners a platform to compete with major marketers.

However, Otedola noted that the model has since collapsed with the commencement of local fuel production by the Dangote Refinery.

According to him, most of the country’s four million metric tons of storage capacity now lies idle, while domestic supply has become efficient and reliable.

Otedola dismissed claims that depots significantly drive employment, arguing that filling stations create more jobs for Nigerians.

He added that insisting on Dangote Refinery subsidising DAPPMAN with N1.5 trillion would amount to burdening consumers unnecessarily.

The billionaire also said Nigeria’s experience with cement showed that once local production takes off, the infrastructure built around imports becomes obsolete.

He urged depot owners to sell, restructure or invest in new value chains, even suggesting they could acquire and run the Port Harcourt Refinery if they believe in competition.

“If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains. In fact, if they truly believe in competition, they could even come together and acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not.

“Even in developed markets, refinery operators are downsizing their depot footprint. Many are converting them into bonded warehouses or exiting completely. Folawiyo Group, known for its foresight and integrity, sold its depot and exited early. That is strategic thinking.

“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 We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation.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,” Otedola said.