Billionaire businessman, Femi Otedola, has alleged that over N2 trillion was siphoned through fraudulent petrol subsidy claims during the administration of former President Goodluck Jonathan, with oil depot licences serving as the major conduit for abuse.

In a statement, Otedola backed the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

On September 16, the association accused the refinery of engaging in “market-disruptive practices,” alleging that its recent price cuts were aimed at stifling competition rather than serving national interest.

The refinery, in response, claimed that DAPPMAN had demanded an annual subsidy of N1.5 trillion to enable its members to match Dangote’s gantry prices at their depots.

Weighing in on the matter, Otedola argued that the petrol subsidy regime was deliberately structured to favour depot owners, who he said were the biggest beneficiaries of the scheme.

“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and members of the association became the primary beneficiaries.

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

He further dismissed what he described as the “myth” that depots create jobs, noting that a typical depot employs only a handful of workers, compared to filling stations that directly engage dozens of Nigerians as attendants, cashiers, security guards, and cleaners.

Otedola urged members of the association to abandon what he termed obsolete facilities that no longer align with the country’s economic realities. He drew parallels with the cement industry, where bulk carriers became redundant after Nigeria ramped up local production.

“The same outcome awaits fuel depots. If the members do not adapt, they risk becoming irrelevant and possibly bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains,” he advised.

He also challenged the marketers to demonstrate their faith in competition by pooling resources to acquire the Port Harcourt refinery and prove they can succeed where the Nigerian National Petroleum Company Limited had failed.