Oil marketers have said Dangote Refinery?s newly launched CNG-powered trucks would not be enough for an effective distribution of petroleum products across the country.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, while speaking on Channels Television?s The Morning Brief on Tuesday, noted that the investments of oil marketers in the downstream sector should not be discarded.

?All we are asking for is inclusion because there is no way Dangote?s trucks will be enough to supply products to the nooks and crannies of the country.

?We are also investing in CNG trucks, so there is not so much innovation in saying Dangote is the only one with such trucks.

?All we want is to ensure seamless and effective supplies to even areas where Dangote?s trucks cannot reach.

?We, the retail outlet owners, are the last men in the industry, and should be able to get products from almost all the depots in the country. We want Dangote Refinery to be successful?, he said.

His stance followed a detailed address by billionaire and businessman, Femi Otedola, asking members of the Depot and Petroleum Products Marketers Association of Nigeria and the Dangote Refinery (DAPPMAN) to sell their properties, restructure, and reinvest in the Port Harcourt refinery to stay relevant in the sector.

Otedola said, ?What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing.

?The setting up of depots was mainly to collect PFIs. No depots, No PFIs from NNPC who were sole suppliers of gasoline at the time and which thus led to the breeding of complacent importers whose sole agenda was on arbitrage and subsidy margins.

?Since PFI is gone, I see no reason why Dangote Refinery should subsidize DAPPMAN with N1.5 trillion which they are asking Dangote Refinery to pay and subsequently pass this cost to consumers. I salute the courage of my brother Aliko Dangote, like Amazon Incorporated in bringing about transformative change in the downstream sector.

?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. 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.

?Let?s also address a myth that continues to be repeated. Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians?from pump attendants to cashiers, security personnel, and cleaners. If anything, DAPPMAN members should be focusing on owning and scaling last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us.

?The global picture is instructive. Depots in Amsterdam or Houston were 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, many 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.?

Responding, Gilly-Harris said Otedola?s advice to DAPPMAN to scrap their depots was insensitive to the plights of the businessmen.

?Otedola?s view on marketers innovating and restructuring is not a thoughtful statement. Is he saying all the investments that have happened in that sector should just go down the drain?

?Yes, new things come up in terms of innovation, and old things will go, but there are structures that will still serve even in this current reality.

?Dangote?s investment in the sector is very timely because it gives all of us peace of mind.

?But, Mr Otedola?s thoughts are up for debate because he himself was a DAPPMAN member, and he knows what it took for him to invest in that area.

?Today, he has divested into other areas, but others have not been able to move as fast as he did.

?Recommending that they should scrap their investments is something that he should think deeply about before giving such advice.

?These facilities are across Nigeria- Port Harcourt, Calabar, Port Harcourt, Ogara, Lagos, and even some of them on the Mainland to help ease product distribution.

?I believe that DAPPMAN?s leadership can speak for themselves, but I don?t think it is a good idea that Nigerians who have invested so much should scrap their investments,? he said. (Channels TV)

?A fleet of trucks are seen lifting Premium Motor Spirit, known as petrol, at the refinery located in the Ibeju-Lekki area of Lagos State. Credit: X/ @DangoteGroup

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