Depot owners in Nigeria have emphasized their indispensable role in the country’s fuel supply chain, countering recent remarks by billionaire Femi Otedola. Otedola, Chairman of FBN Holdings, had suggested that Nigerian depot owners should dismantle their facilities and sell them as scrap following the delivery of Dangote’s Premium Motor Spirit (PMS).
In response, Capt. Emmanuel Iheanacho, Chairman of Integrated Oil and Gas Ltd. and a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), clarified that petroleum storage depots are a vital component of the fuel supply chain. He stressed that these depots are essential for storing and distributing fuel, ensuring that the supply chain functions effectively to meet consumer demand.
Iheanacho highlighted that while there may be competitive elements in the market, collaboration and cooperation between different players, including the Nigerian National Petroleum Corporation Ltd. (NNPC) and the Dangote Refinery, are crucial for maintaining a stable fuel supply in Nigeria. He emphasized that depots are not in direct competition with primary fuel sources like the NNPC or Dangote but rather work in conjunction with them to support a reliable supply chain.
Private depots, he noted, play a key role in distribution, especially given Nigeria’s widespread infrastructure. They provide essential storage and distribution services that complement the efforts of both public and private entities in the petroleum sector. Ultimately, Iheanacho concluded, depots are critical partners in ensuring an efficient and reliable fuel supply network across the country.