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Nigerian oil marketers have turned down billionaire Femi Otedola’s request that they sell off their holdings in the country’s oil industry.
Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said Otedola’s remark was disrespectful and ill-considered during his appearance on Channels Television’s The Morning Brief on Tuesday.
Recall that Otedola had asserted that there had been fraudulent fuel subsidy activities under previous President Goodluck Jonathan’s government.
He said that depot licenses were linked to the false subsidy claims, pointing out that the program promoted corruption and rent-seeking while rewarding neither transparency nor innovation.
In particular, Otedola faced off against the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), an oil marketing organization that has been at odds with the Dangote Refinery for some time.
Going back in time, Otedola remembered that he established DAPPMAN in 2002, 23 years ago, with the sole goal of undermining the power of large marketers and giving individual depot owners an equitable opportunity to prosper.
However, he said that the founding members have departed and that those who remain in the association are holding onto depreciated assets.
In response to Otedola’s allegations, Gillis-Harry stated that the entrepreneur is unable to speak for the company.
He went on to say that Otedola should not have made such hurtful remarks since, as a former DAPPMAN member, he should have had a better awareness of the types of investments the oil marketers had made.
“Otedola’s fortunate ability to quickly and easily dispose of his own assets and move on does not give him any right to tell others to scrap investments they gave several million dollars to set up,” the PETROAN boss said.
“Otedola’s opinion on marketers reorganizing and inventing is not well-considered. Does he mean that all of the investments made in that industry should be thrown away?
“Yes, new innovations will emerge and old ones will disappear, but some structures will continue to function despite the current state of affairs.
Because it provides us all with peace of mind, Dangote’s investment in the industry is quite appropriate.
However, Mr. Otedola’s opinions are debatable because he was a member of DAPPMAN and is aware of the costs involved in making that investment.
He has made investments in other areas today, but others have not been able to keep up with his pace.
Before making such a suggestion, he ought to give it careful consideration. He should advise them to abandon their assets.
In order to facilitate product distribution, these facilities are located throughout Nigeria, including in Port Harcourt, Calabar, Ogara, Lagos, and even some on the Mainland.
“I don’t think it is a good idea for Nigerians who have invested so much to scrap their investments, but I think DAPPMAN’s leadership can speak for themselves,” he said.
