Dangote Refinery: Ex-minister faults Otedola’s call for scrapping of depots
By Adewale Sanyaolu
A former Minister of Interior and Chairman of Integrated Oil and Gas Limited, Capt Emmanuel Iheanacho, has reiterated the indispensable role of depot owners towards the delivery of Dangote petroleum products, especially petrol.
The oil magnet made the clarification in reaction to a statement credited to billionaire businessman, Femi Otedola, that depot owners should dismantle their facilities and sell them as scrap in the wake of commencement of operations by Dangote refinery.
Iheanacho who is also a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), maintained that petroleum products storage depots are a vital component of the fuel supply chain that are complementing primary fuel sources.
He explained that without these depots, other players in the supply chain would struggle to deliver fuel to consumers.
“While there might be competitive elements in the market, collaboration and cooperation are essential towards ensuring a stable fuel supply in Nigeria.
Petroleum depots are not a replacement for primary fuel sources but are crucial for storing and distributing products to meet demands,’’.
He added that depots play an important role in distribution, particularly given Nigeria’s dispersed infrastructure.
Iheanacho also noted that while private depots may compete with the Nigerian National Petroleum Corporation Ltd. (NNPC) in terms of storage and distribution, they are not necessarily in direct competition with the NNPC or the Dangote Refinery.
“Instead, these depots often work in conjunction with both to support a reliable fuel supply chain. Private depots may compete with petroleum importers for market share by offering essential storage and distribution services. Ultimately, competition aims to balance market prices.
He argued that depots are key partners in supporting the entire supply chain, including NNPC and Dangote.
The former Minister explained that depots provide critical storage and distribution support not only for NNPC and Dangote but also for petroleum importers, ensuring a more efficient and reliable fuel supply network.
Otedola, in a post on X, had said the coming on stream of Dangote refinery has practically put an end to the business of fuel importers in the country.
“You have not just built a refinery; you have liberated us from the chains of economic dependence that have held this nation back for far too long. Now, with your refinery in full swing, the depot owners should take heed—it’s time to dismantle those depots and sell them as scrap while the market is still high. The world has changed, and those who do not adapt will be left behind,”.
