Oil marketers under the umbrella of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have dismissed billionaire businessman Femi Otedola’s recent call for stakeholders to divest from existing investments in the nation’s oil sector.
Speaking on Tuesday, PETROAN’s National President, Billy Gillis-Harry, described Otedola’s position as “insensitive” and not reflective of the realities on ground.
“Is he saying all the investments that have happened in that sector should just go down the drain?” Gillis-Harry queried, insisting that the advice was ill-considered.
PETROAN: Otedola’s Advice Not Reflective of Nigeria’s Petroleum Sector Investments Reality
Otedola, a former major player in Nigeria’s downstream sector and current investor in other industries, had advised members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to pivot towards retail distribution and consider moving away from fuel tank farms built for an import-dependent economy.
His comments were based on the belief that the local supply capacity of the Dangote Refinery would render traditional storage and import infrastructure less relevant.
But PETROAN says this view oversimplifies a complex and capital-intensive sector.
“These facilities located in Port Harcourt, Calabar, Ogara, and Lagos are not only significant investments but are also critical to national product distribution,” Gillis-Harry noted.
Investments Should Be Preserved, Not Scrapped
Gillis-Harry argued that many marketers have sunk billions of naira into the development of petroleum distribution infrastructure, and such investments cannot be written off lightly.
“Recommending that they be scrapped is something he should think deeply about before giving such advice,” he added.
He also pointed to the recent efforts of industrialist Aliko Dangote, whose refinery project has injected renewed confidence into the downstream sector. Rather than trigger a pullout, Gillis-Harry believes such ventures signal the need for greater alignment and collaboration, not abandonment.
‘One-Size-Fits-All’ Won’t Work for Nigeria’s Petroleum Sector Investments — PETROAN
While Otedola’s advice might suit some stakeholders, PETROAN insists that the Nigerian downstream sector cannot be governed by a one-size-fits-all approach.
“Otedola has moved on to other ventures, but many of us are still deeply invested in this sector. His situation is not representative of the average marketer’s reality,” Gillis-Harry said.
Otedola Calls for Shift Toward Last-Mile Retail Outlets
Femi Otedola, a former chairman of Forte Oil (now Ardova), had earlier called for a strategic shift in investment thinking, arguing that fuel imports were becoming obsolete in the face of domestic refining capacity coming online.
While some in the industry agree that business models must evolve, PETROAN believes that such transitions must be strategically phased, not hastily executed.
“We welcome innovation and reform, but let’s not forget those who built the backbone of this sector,” Gillis-Harry concluded.
