The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has strongly denied accusations that it is hindering the operations of local refineries to maintain the importation of petroleum products.
Olufemi Adewole, the Executive Secretary of DAPPMAN, clarified that the association’s members are patriotic investors who have committed substantial resources to building infrastructure and facilities across all sectors of the downstream value chain.
Their primary goal, he said, was to ensure the seamless supply and distribution of petroleum products throughout Nigeria.
“It is absurd to suggest that depot owners are intentionally obstructing local refineries or trying to shortchange the country. Basic business sense dictates that any entrepreneur would prefer to work with a supplier who offers products at competitive rates with minimal challenges in accessing those products,” Adewole stated.
“We would much rather avoid the arduous process of sourcing foreign exchange for our trading activities, which puts pressure on the naira, and instead, source all our products from local refineries using local currency, as is being considered following President Bola Ahmed Tinubu’s directive.”
Adewole pointed out that DAPPMAN and its members were enthusiastic about the commencement of operations at the Dangote refinery. “As soon as the Dangote refinery began production, DAPPMAN leadership initiated several meetings with the refinery’s management to discuss supply options and arrangements, driven by our excitement about this development.”
He further emphasised that depot owners, who have been unfairly labelled as being against local refineries, have already started patronising the Dangote refinery despite the operational challenges encountered.
In response to claims from some oil industry players that depot owners contribute little value to the fuel distribution chain, the Executive Secretary defended the essential role depot owners play in the sector.
He emphasised that the final consumer cannot purchase fuel directly from refineries.
“Depots act as off-takers of large fuel volumes, which are imported in ships, paid for in foreign exchange, and then distributed to branded retail outlets and independent retailers.
“Many depots also manage fleets of tanker trucks to ensure efficient distribution, which counters the notion that depot owners merely inflate prices,” he said.
Adewole said those who understand the downstream sector’s operations cannot dismiss depot owners as unnecessary middlemen.
He stressed that depot owners would prefer to source products locally in naira, provided the product specifications and business terms are competitive.(daily trust)
