I Told Him!” – Otedola Reveals How He Warned Jonathan On Fuel Subsidy Crisis

Billionaire businessman Femi Otedola has alleged that widespread fraud plagued Nigeria’s fuel subsidy regime during the administration of former President Goodluck Jonathan.

In a statement addressing current developments in the oil and gas sector, Otedola revealed that he had personally cautioned Jonathan at the time about fraudulent oil marketers exploiting the system.

He explained that the fraudulent subsidy claims were linked to depot licenses, a policy framework that, according to him, promoted rent-seeking and corruption rather than transparency or innovation.

Otedola also commended Aliko Dangote for the progress made since the Dangote Refinery began operations, describing it as a landmark achievement for Nigeria’s quest for energy independence and economic transformation.

“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, with DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria) members as the major beneficiaries. Over ₦2 trillion was siphoned through questionable claims tied to depot licenses. The policy encouraged corruption, not innovation,” Otedola stated.

He, however, gave credit to President Bola Tinubu for implementing the full deregulation of the downstream petroleum sector, saying no past leader had shown the political will to take such a bold step.

“In a sector long plagued by subsidy fraud, product diversion, smuggling, and rent-seeking, this reform signals a decisive break from the past and sets the stage for a more efficient and accountable energy market. Yet, some still cling to outdated practices, resisting change even as the tide has turned,” he wrote.

Otedola particularly criticized the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), which has been in recent conflict with the Dangote Refinery.

Looking back, he recalled founding DAPPMAN in 2002 with the aim of challenging the dominance of major marketers and creating opportunities for independent depot owners. However, he noted that most of the original members have since exited, leaving behind operators “clinging to assets that no longer hold real value.”

“But history has shown time and again—you can delay change, frustrate it, even sabotage it, but you cannot stop it. Many of the original players are gone, and I advised some as far back as last year to sell their depots for scrap while they still had value. Nigeria now has over four million metric tons of storage capacity, much of it lying idle. With Dangote Refinery supplying fuel locally, the old business model has collapsed,” Otedola said.

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