Billionaire businessman, Femi Otedola, has alleged that over ₦2 trillion was siphoned through questionable petrol subsidy claims linked to depot licences during the administration of former President Goodluck Jonathan.
Otedola made the disclosure in a statement on Monday while expressing support for the Dangote Petroleum Refinery amid its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
Recall that on September 16, DAPPMAN accused the refinery of engaging in market-disruptive practices, claiming that its fuel price cuts were designed to weaken competition rather than driven by patriotic motives.
In response, the Dangote Refinery alleged that DAPPMAN demanded an annual subsidy of ₦1.5 trillion to enable its members to match the refinery’s gantry prices at their depots.
Backing Dangote, Otedola said the country’s subsidy regime had long been skewed in favor of depot owners, with DAPPMAN members as the primary beneficiaries.
“On subsidy, 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 stated.
“Over ₦2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation; it encouraged rent-seeking and corruption,” he added.
The businessman also challenged what he described as a persistent “myth” that depots significantly contribute to job creation, stressing that the sector does not drive employment as often claimed.