Billionaire businessman and investor, Femi Otedola, has predicted that the business model of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) will soon collapse in the face of competition from the newly operational Dangote Refinery.
Otedola made the remarks in a statement on Sunday, stressing that DAPPMAN’s reliance on import-dependent fuel distribution is no longer sustainable, especially with the refinery poised to transform Nigeria’s downstream oil sector.
According to him, the Dangote Refinery’s capacity to supply locally refined petroleum products at scale will render obsolete the long-standing model of marketers who depend heavily on imports to remain in business.
“DAPPMAN’s outdated business approach cannot withstand the competitive advantage of a 650,000 barrels per day refinery. The refinery changes everything — from supply dynamics to pricing structures — and will ultimately reshape Nigeria’s energy market,” Otedola stated.
He further argued that continued reliance on imported products exposes marketers to foreign exchange volatility, rising freight charges, and global price shocks, all of which undermine stability in the sector.
Industry observers note that the Dangote Refinery, which recently began operations, is expected to meet Nigeria’s domestic fuel demand and create surplus for export, significantly reducing the need for imports that have long drained the country’s foreign reserves.
Otedola urged marketers to rethink their strategies, invest in modern infrastructure, and explore partnerships that align with the refinery-driven supply chain, warning that failure to adapt could lead to large-scale business failures in the downstream sector.
The comments have sparked debate within the industry, with some experts agreeing that the refinery marks a turning point, while others argue that distribution networks still provide DAPPMAN with relevance in the market.
