Billionaire businessman, Femi Otedola, has revealed that more than N2 trillion was siphoned through questionable petrol subsidy claims linked to depot licences under the administration of former President Goodluck Jonathan.
Otedola made this known in a statement on Monday, backing the Dangote Petroleum Refinery, DPR, in conjunction 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 the company’s fuel price cuts were strategically timed to weaken competition rather than to serve patriotic interests.
The Dangote refinery, while countering the group, said DAPPMAN allegedly demanded an annual subsidy of N1.5 trillion to enable members match the refinery’s gantry prices at their own depots.
Speaking on the issue, Otedola said the petrol subsidy system was structured to favor depot owners, with DAPPMAN members emerging as the main 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,” he said.
“Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation, it encouraged rent-seeking and corruption.”
Addressing what he described as “a myth that continues to be repeated”, Otedola said depots do not drive employment as some people claim.
N2trn siphoned through questionable subsidy claims under Jonathan govt – Otedola