₦airaland Forum

Billionaire businessman Femi Otedola has alleged that more than N2 trillion was siphoned through questionable petrol subsidy claims during the administration of former President Goodluck Jonathan, with depot licences serving as the major channel of abuse.

In a statement, Otedola threw his weight behind the Dangote Petroleum Refinery in its ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria.

The association had on September 16 accused the refinery of engaging in market disruptive practices, claiming that its recent price cuts were aimed at weakening competition rather than serving national interest.

Responding, the refinery said the association allegedly demanded an annual subsidy of N1.5 trillion to enable members match its gantry prices at their depots.

Otedola maintained that the petrol subsidy system was deliberately structured to favour depot owners who became the primary beneficiaries of the scheme.

“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and members of the association became the primary beneficiaries.

“Over N2 trillion was siphoned through questionable claims all tied to depot licences. The policy rewarded neither transparency nor innovation, it encouraged rent seeking and corruption,” he said.

He dismissed the “myth” that depots create jobs, stressing that a typical depot employs not more than five people, including the gatekeeper.

This, he noted, is compared to filling stations that provide jobs for dozens of Nigerians ranging from attendants to cashiers, security guards and cleaners.

Otedola advised members of the association to stop clinging to what he called obsolete facilities that no longer serve the country’s current economic reality.

He cited the cement industry as an example, where bulk carriers became redundant after Nigeria began producing cement locally.

“The same outcome awaits fuel depots. If the members do not adapt, they risk becoming irrelevant and possibly bankrupt. Instead of resisting progress, they should consider selling, restructuring, or investing in new value chains,” Otedola said.

He challenged them to demonstrate their belief in competition by pooling resources to acquire the Port Harcourt refinery and attempt to succeed where the Nigerian National Petroleum Company Limited had failed.

9jatriot:
Forget all the attempts at whitewashing, GEJ was just used as a conduit pipe by many. The man practically ran down our reserves and increase our loan obligation despite high oil income.

Also, the argument that GEJ tried to remove subsidy is not technically correct because when you remove subsidy, you do not fix a price; instead, you allow market force to determine the new price. What GEJ did then was to increase the pump price.

9jatriot:
Forget all the attempts at whitewashing, GEJ was just used as a conduit pipe by many. The man practically ran down our reserves and increase our loan obligation despite high oil income.

Also, the argument that GEJ tried to remove subsidy is not technically correct because when you remove subsidy, you do not fix a price; instead, you allow market force to determine the new price. What GEJ did then was to increase the pump price.

AMINDA:
It's nothing compared to the heist going on under the current dispensation. They have started subtle campaign of calumny against Jonathan preparatory to his impending entry into the political space but it's all dead on arrival. The worst of Jonathan is better than the best of Tinubu and APC cannot campaign against Goodluck Jonathan without campaigning against themselves.

iwaeda:
A nation, the rich wants the poor to get poorer and the poor clapping for them.

AntiChristian:
One thing i know is that GEJ was the most mediocre President we had since 1999.

What about Diezani-gate?

What about the Chibok girls case?

Only God knows how much was truly Siphoned through the ministry of Petroleum!

Make GEJ no even come disgrace himself for another term!

He's better off now as a Global statesman!

AMINDA:
It's nothing compared to the heist going on under the current dispensation. They have started subtle campaign of calumny against Jonathan preparatory to his impending entry into the political space but it's all dead on arrival. The worst of Jonathan is better than the best of Tinubu and APC cannot campaign against Goodluck Jonathan without campaigning against themselves.

strangest:
Jonathan wanted to stop it by stopping subsidy


But Tinubu and co protested against it



Even buhari said there was nothing like subsidy

yarimo:
It's clear GEJ is the most unserious former president of Nigeria

iwaeda:
They are coming out to fight now, once they heard GEJ may contest. Tinubu has spent two years, why has he not jailed subsidy beneficiaries. APC told us no subsidy, even under Buhari and Tinubu, under recovery paid was way way higher than what GEJ was accused of, and petrol pump price where increased, even when oil sells less than $100 per barrel, when subsidy was paid.

AMINDA:
It's nothing compared to the heist going on under the current dispensation. They have started subtle campaign of calumny against Jonathan preparatory to his impending entry into the political space but it's all dead on arrival. The worst of Jonathan is better than the best of Tinubu and APC cannot campaign against Goodluck Jonathan without campaigning against themselves.

adekolaelect:
political jobber .... Weldon . Otedola and Dangote don't mind who becomes the president but what will make the country growing economically . We are talking about economics sabotage Cabba on the country oil and Citizens you are here defending who was or who will become president . They are with whoever the president is , To run their business . They come out to talk BCS they appreciate the way the current administration handle the oil and economy sectors of this country. A slave with no hope reason that your ways.

nairalanda1:
Okay let's excuse and forgive GEJ corruption, because tinubu corruption is (truthfully) worse.

This isn't a competition old man. Corruption is evil and damages our country. Don't be like yarimo oga.

AMINDA:
No-one is excusing corruption. Jonathan does not enjoy immunity and is currently not in power. What stops the APC from prosecuting him for the past 10 years? This is only being resurrected now because there are feelers that Jonathan will soon be entering the race. Beyond media trials, if Tinubu can seek reelection, then Jonathan is doubly qualified to also seek reelection. Simple.

SarkinYarki:
These lies against Jonathan will never be allowed to stand .

Jonathan inherited a 300 billion dollar economy and grew it to 540bn the most prosperous Nigeria has ever been , maintained single digit inflation for 5 years and you want to compare him to either Buhari or the current govt that have not added a single notch to our GDP in 12 years but instead reduced it from 540 billion to 180 billion and hit us with the greatest devaluation of the Naira has ever seen , under APC Nigeria has moved from the number economy bin Africa to number 4 in just a few years ...you guys should have some shame

kedeojo:
Why did you think the APC tru buhari defeated Jonathan then. Jonathan mismanaged the economy cos since the history of Nigeria, his government withnessed the second highest oil boom after IBB. Which infrastructure did Jonathan built. Under his tenure, he was borrowing to pay ordinary salary for FG workers. Go and check the rating of portharcourt international airport under him. Hope you listen to diezani confession of keeping 9b dollars in trust of the current zamfara governor dauda Lawal who was the former executive director of first bank. There unprecedent high scale corruption under Jonathan. Why nigerians think he did wonder was because buhari couldn't managed the already badly failing economy under Jonathan and now became worse. We also whitnessed the dasuki gate scandal. Jonathan was purely clueless.

AMINDA:
No-one is excusing corruption. Jonathan does not enjoy immunity and is currently not in power. What stops the APC from prosecuting him for the past 10 years? This is only being resurrected now because there are feelers that Jonathan will soon be entering the race. Beyond media trials, if Tinubu can seek reelection, then Jonathan is doubly qualified to also seek reelection. Simple.