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abdulsalam

a year ago

Why DAPPMAN’s Outdated Business Model Crumble Against Dangote Refinery

Congratulations to my dear brother, Aliko Dangote, on the success achieved so far since the Dangote Refinery commenced operations. It is a historic leap for Nigeria’s energy independence and economic future.

But more importantly, credit must go to President Bola Ahmed Tinubu for doing what no other leader before him had the political will to execute: the full deregulation of the downstream petroleum sector.

This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery.

In a sector long plagued by rent-seeking, subsidy fraud, product diversion, and smuggling, this reform marks a decisive break from the past and lays the foundation for a more efficient and accountable energy market.

Yet despite this progress, there are still voices clinging to the old ways. Voices determined to resist change, even when it’s clear the tide has turned.

I’ve followed recent commentary around fuel supply issues and feel compelled to provide some perspective, especially as it relates to the future of this country, which remains threatened by entrenched cabals who still believe they can block the winds of reform.

But history has shown time and again: you can delay change, frustrate it, even sabotage it but you can never stop it. I founded DAPPMAN in 2002 (23 years ago) with a clear mission: to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

I personally structured the group, appointing the late George Enenmoh, then MD of Ascon Oil, as Chairman, while I served as Vice Chairman and Sayyu Dantata as Secretary. At the time, depot ownership was strategic. We were filling critical supply gaps left by an inefficient system.

Designed to serve export markets, especially Africa. With Nigeria now refining locally, such infrastructure is increasingly unnecessary. The same thing happened in the cement industry.

Once Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired, and many were sold as scrap. The same outcome awaits fuel depots.

If DAPPMAN members do not adapt, they will not only become irrelevant, they may go bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains.

In fact, if they truly believe in competition, they could even come together and acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not.

Even in developed markets, refinery operators are downsizing their depot footprint. Many are converting them into bonded warehouses or exiting completely. Folawiyo Group, known for its foresight and integrity, sold its depot and exited early. That is strategic thinking.

DAPPMAN had its place, but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation.

Aliko’s refinery is not the problem; it is the solution.

Let’s move forward.

Africans are proud of you. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.

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