Billionaire Femi Otedola Alleges N2 Trillion Fuel Subsidy Fraud During Jonathan-era
- Femi Otedola has accused depot owners of diverting over N2 trillion through fuel subsidy claims during President Goodluck Jonathan’s administration
- He defended Dangote Refinery in its dispute with fuel marketers, criticising the old subsidy system as corrupt and favouring depot operators
- Otedola urged depot owners to adapt to industry changes or risk becoming obsolete and challenged them to buy and revive the Port Harcourt refinery
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Femi Otedola, renowned oil tycoon and billionaire entrepreneur, has alleged that depot operators siphoned over N2 trillion through murky subsidy claims during former President Goodluck Jonathan’s tenure.
Source: UGC
In a statement released on Monday, September 22, Otedola voiced his strong support for the Dangote Petroleum Refinery amidst its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
The association had, on September 16, accused the refinery of undermining fair competition by slashing prices in a move they claimed was intended to dominate the market rather than serve the public interest.
Dangote Refinery refuted these claims, arguing that the marketers were attempting to secure N1.5 trillion annually in subsidies to allow them to match the refinery's lower prices.
Otedola criticised the former subsidy system, describing it as fundamentally flawed and designed to benefit a select group of depot owners.
Otedola said:
“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, it encouraged rent-seeking and corruption."
Depot owners risk bankruptcy, Otedola says
He went on to challenge the notion that depots are significant employers, labelling it a "myth." According to him, most depots operate with minimal staffing, often no more than five people, in contrast to filling stations, which typically employ larger teams, including attendants, cashiers, cleaners, and security staff.
Otedola urged depot operators to adapt to the changing energy landscape by upgrading outdated infrastructure or exploring new areas of investment.
He added:
"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.”
As part of his criticism, Otedola encouraged depot owners to demonstrate their commitment to true competition by purchasing and revamping the Port Harcourt refinery.
With this latest statement, Otedola not only reinforced his alliance with Dangote but also rekindled national discourse on the effectiveness of fuel subsidies and the long-term viability of fuel depots in Nigeria’s transitioning energy sector.
Recall that Dangote had also asked the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) to disclose those responsible for the alleged $18 billion spent on government-owned refineries without producing any results.
Source: UGC
Dangote halts fuel sales to unregistered marketers
In related news, Legit.ng reported that the Dangote Refinery suspended direct sales of petroleum products to unregistered marketers, prioritising retail sales.
The mega refinery disclosed in an email to the marketers that it had stopped accepting payments for product lifting effective Thursday, September 18.
It disclosed that payments made after the date would not be accepted and asked the marketers to adhere to the new rule.
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Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
