“Subsidy Scheme Under Jonathan Encouraged Corruption” – Otedola

Billionaire businessman Femi Otedola has revealed that more than N2 trillion was siphoned through questionable petrol subsidy claims linked to depot licences.

He said these irregularities occurred during the administration of former President Goodluck Jonathan.

The statement was made on Monday, as Otedola spoke in support of the Dangote Petroleum Refinery (DPR) in conjunction with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

Otedola explained that the petrol subsidy system was structured to favor depot owners, with DAPPMAN members emerging as the primary beneficiaries.

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“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.

He added, “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.”

The disclosure comes after DAPPMAN, on September 16, accused the Dangote refinery of engaging in market-disruptive practices.

The group claimed that the refinery’s fuel price cuts were strategically timed to weaken competition rather than serve patriotic interests.

In response, the refinery said DAPPMAN allegedly demanded an annual subsidy of N1.5 trillion to enable its members to match the refinery’s gantry prices at their own depots.

Otedola also addressed claims that depots drive employment, calling it “a myth that continues to be repeated,” emphasising that the subsidy system primarily benefited depot owners rather than fostering job creation or economic innovation.

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