Nigeria’s oil marketers have dismissed billionaire Femi Otedola’s suggestion that petroleum depot owners abandon their facilities and shift focus to retail fuel stations.
Speaking on Tuesday, Billy Gillis-Harry, national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said Mr. Otedola’s position overlooks the realities of long-standing investments in the downstream sector.
“Suggesting that depots should be scrapped is not a thoughtful statement,” Mr. Gillis-Harry said during an interview on Channels Television. “It raises the question — should all the massive investments made by entrepreneurs over decades now be treated as waste?”
Otedola’s position
In a statement released on Sunday, Mr. Otedola argued that Nigeria’s evolving energy landscape makes traditional depot operations less relevant. With the Dangote Refinery now refining fuel locally, he said, the country no longer depends on storage facilities originally built to serve an import-driven fuel economy.
Citing international models, he noted that depots in Amsterdam and Houston were strategically positioned for exports, mainly targeting Africa. In his view, Nigerian depot owners should adapt by investing in last-mile retail outlets rather than clinging to outdated infrastructure.
“If they fail to restructure, DAPPMAN members risk irrelevance and possible bankruptcy,” Mr. Otedola warned, urging them to consider selling assets, diversifying into new value chains, or even acquiring the Port Harcourt Refinery to prove their competitive strength.
Pushback from marketers
But Mr. Gillis-Harry countered that while innovation drives change in any industry, depots remain an essential link in Nigeria’s supply chain.
“Unlike Mr. Otedola, not all investors have had the same opportunity or speed to pivot into new ventures,” he said. “Advising others to abandon their infrastructure without considering the weight of their commitments is insensitive.”
He added that depot facilities across Port Harcourt, Calabar, Oghara, and Lagos still play a vital role in easing nationwide fuel distribution.
Industry dispute deepens
The disagreement highlights tensions between depot operators under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Mr. Otedola, who has openly backed Aliko Dangote in his clash with the group. DAPPMAN had accused the Dangote Refinery of bypassing depots in direct fuel supply to retailers, a move they argue threatens their businesses.
For now, marketers insist their depots remain relevant, while Otedola maintains that the future lies in retail expansion and structural reinvention.
