Billionaire businessman, Mr Femi Otedola, yesterday said more than N2 trillion was siphoned in questionable fuel subsidy claims under the Goodluck Jonathan administration, narrating how he warned the ex-President about fraudulent oil marketers at the time.

In a statement on recent issues in the oil and gas sector, especially in the downstream, Otedola also congratulated Aliko Dangote, on the success achieved so far since his refinery commenced operations, describing it as a historic leap for Nigeria’s energy independence and economic future.

The philanthropist maintained that all these fraudulent subsidy claims were tied to depot licenses, noting that the policy rewarded neither transparency nor innovation, but encouraged rent-seeking and corruption.

“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria) members became the primary beneficiaries.

“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 business mogul stated.

But more importantly, he noted that credit must go to President Bola Tinubu for doing what no other leader before him had the political will to execute, which is the full deregulation of the downstream petroleum sector.

This singular act, he said, has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery.

“In a sector long plagued by rent-seeking, subsidy fraud, product diversion, and smuggling, this reform marks a decisive break from the past and lays the foundation for a more efficient and accountable energy market. Yet despite this progress, there are still voices clinging to the old ways. Voices determined to resist change, even when it’s clear the tide has turned,” Otedola wrote.

Besides, having followed recent commentary around fuel supply issues, Otedola said that he felt compelled to provide some perspective, especially as it relates to the future of the country, pointing out that Nigeria remains threatened by entrenched cabals who still believe they can block the winds of reform.

Specifically, Otedola took on DAPPMAN, a group of oil marketers that has had a running battle with the Dangote Refinery in recent days on the ground of alleged plans by Dangote to monopolise the sector.

Otedola, going down memory lane, recalled that he founded DAPPMAN 23 years ago, specifically in 2002, with a clear mission to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

According to him, at the time, the association aimed to fill critical supply gaps left by an inefficient downstream system. However, he emphasised that since then, times have changed, with many of the original players having exited the scene, and those left, clinging to assets that no longer reflect today’s business realities.

“But history has shown time and again: you can delay change, frustrate it, even sabotage it but you can never stop it. I founded DAPPMAN in 2002 (23 years ago) with a clear mission, to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

“I personally structured the group, appointing the late George Enenmoh, then Managing Director of Ascon Oil, as Chairman, while I served as Vice Chairman and Sayyu Dantata as Secretary. At the time, depot ownership was strategic. We were filling critical supply gaps left by an inefficient system.

“But times have changed. Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities . I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling.

“Zenon Oil pioneered the modern diesel business in Nigeria and grew to become the largest supplier in the country. We built depots to store our imported diesel because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery fully operational, those gaps no longer exist.

“We now have domestic production and local supply efficient, reliable, and proudly Nigerian. Furthermore, we must not fail to recognise the attendant benefits of eliminating the grid lock around the Ibafon , Tincan and Apapa areas due to the operations of the Dangote Refinery,” Otedola argued.

Today, more than just producing fuel, Otedola noted that Aliko Dangote has elevated the entire logistics chain, purchasing 8,000 brand new CNG eco-friendly trucks that will distribute across the country with less pollution and fewer breakdowns, unlike the aging, rickety trucks still used by some operators.

He added: “I know this business intimately. I was king of it and at the peak of it in 2005 (20 years ago) , I was conferred with the life patron of the PTD (Petroleum Tanker Drivers) union by Mr Akinlaja. So, when I say the game has changed, I speak from deep experience.

“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing. The setting up of depots was mainly to collect PFIs. No depots, no PFIs (Pro Forma Invoices) from NNPC who were sole suppliers of gasoline (petrol) at the time and which thus led to the breeding of complacent importers whose sole agenda was on arbitrage and subsidy margins.”

Since there are no more PFIs, the businessman argued that there is no reason why the Dangote Refinery should subsidise DAPPMAN with N1.5 trillion which they are asking Dangote Refinery to pay and subsequently pass this cost to consumers.

While saluting the courage of ‘my brother Aliko Dangote, like Amazon Incorporated’ in bringing about transformative change in the downstream sector, Otedola emphasised that the myth that depots generate massive employment was untrue.

“Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners.

“If anything, DAPPMAN members should be focusing on owning and scaling last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us”, he stated.

Taking a cue from the global picture, the philanthropist pointed out that depots in Amsterdam or Houston were designed to serve export markets, especially Africa, but that with Nigeria now refining locally, such infrastructure is increasingly unnecessary.

“The same thing happened in the cement industry. Once Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired, many sold as scrap. The same outcome awaits fuel depots,” he said.

If DAPPMAN members do not adapt, Otedola argued that they will not only become irrelevant, but that they may go bankrupt.

Instead of resisting progress, he urged them to consider selling, restructuring, or investing in new value chains, explaining that if they truly believe in competition, they could even come together and acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not.

Even in developed markets, he stated that refinery operators are downsizing their depot footprint, with many converting them into bonded warehouses or exiting completely and mentioning the case of the Folawiyo Group, known for its foresight and integrity, which sold its depot and exited early. “That is strategic thinking,” he posited.

“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” he stated.

Stressing that Africans are proud of Aliko Dangote, he said: “And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”

The former Administrator of Rivers State, Vice Admiral Ibok-Ete Ibas (retd.), has rejected the decision of the Rivers State House of Assembly to investigate financial transactions during his six-month tenure under emergency rule.

Ibas vacated office on September 17, following the expiration of the emergency rule imposed by President Bola Tinubu. His exit coincided with the reinstatement of Governor Siminalayi Fubara, his deputy, and members of the House of Assembly.

At its first sitting since the suspension was lifted, the Assembly, led by Speaker Martin Amaewhule, resolved to examine the state’s financial activities during the emergency rule. Lawmakers said the inquiry would focus on contract awards and expenditures from the consolidated revenue fund.

Assembly members said the probe aims to clarify how public funds were utilised during the six-month period when the state was under federal control.

Available data analysed by The PUNCH indicates that Rivers State received at least N254.37 billion from the Federation Account Allocation Committee (FAAC) between March and August 2025, during Ibas’ administration.

The figures were derived from National Bureau of Statistics (NBS) records and official documents from FAAC meetings. While NBS data covers up to June, July and August figures were sourced from FAAC proceedings reviewed by the newspaper.

According to the data, Rivers received N44.66bn in March, N44.42bn in April, N42.80bn in May, and N42.30bn in June. For July and August, the state received N38.42bn and N41.76bn respectively, averaging N42.40bn monthly.

If the trend continues in September, total FAAC inflows for seven months could reach N297bn.

Further analysis revealed that the 13 per cent oil derivation was the largest revenue component, accounting for N133.24bn—approximately 52.4 per cent—of the total allocation within the six-month period.

In March alone, Rivers earned N25.29bn from derivation, compared to N5.14bn in statutory allocation. In May, derivation stood at N25.70bn while the statutory allocation was N6.05bn.

Even in June, when derivation dropped to N20.94bn, it remained the highest revenue component, highlighting the state’s reliance on oil revenue.

The state also recorded N26.31bn in deductions for external debt servicing between March and August. Monthly deductions stood at N4.56bn from March to July and dropped to N3.54bn in August.

These deductions represented over 10 per cent of statutory allocations and reduced overall net income before other obligations such as contractual deductions and ecological transfers were factored in.

However, Value Added Tax (VAT) collections helped mitigate the impact of these deductions, contributing about N107.78bn or 42.4 per cent of the total allocations.

Monthly VAT receipts were N18.24bn in March, N21.02bn in April, N14.56bn in May, N19.76bn in June, N17.62bn in July, and N16.58bn in August.

The state also received funds from other sources, including the Electronic Money Transfer Levy, exchange gains, and ecology allocations, which improved its net receipts.

Despite receiving large federal allocations, the Rivers State Government has not yet released its 2025 Budget Implementation Report, a statutory document that outlines how revenues and expenditures are managed.

The absence of this report has raised concerns among civil society groups and residents over transparency and the use of public funds during the emergency administration.

The state had been under emergency rule since March 18, 2025, following a political crisis stemming from a rift between former Governor Nyesom Wike and Governor Fubara. The crisis led President Tinubu to suspend the elected state officials and install Ibas as sole administrator.

President Tinubu justified the action under Section 305 of the 1999 Constitution, citing the need to restore order in the state. The proclamation was published in the Federal Gazette and endorsed by both chambers of the National Assembly on March 20.

However, 11 PDP governors challenged the emergency rule at the Supreme Court under case number SC/CV/329/2025. No updates have been provided on the matter since the filing.

Political tensions in the state eased after a reconciliation between Wike and Fubara, allowing for the conduct of local government elections on August 30. The All Progressives Congress won 20 seats, while the PDP secured three.

Ahead of Fubara’s resumption on September 18, Ibas defended his administration, stating that he executed the mandate given by President Tinubu and stabilised governance in the state during his tenure.

Despite this, civil society organisations and opposition groups have demanded an investigation into the management of public funds under Ibas.

Chairman of the Coalition of Civil Society Organisations in Rivers State, Enefaa Georgewill, said the process that brought Ibas into office was unconstitutional and accused the former administrator of mismanaging public resources.

Georgewill said key infrastructure projects, including the Rivers State House of Assembly Complex, remained abandoned despite the state’s significant revenue inflows.

He called on Governor Fubara to establish a panel of inquiry to audit all federal allocations and internally generated revenue received by the state since March.

Georgewill also urged financial regulatory agencies to investigate the financial activities of the Ibas administration, expressing concern over possible corruption.

Similarly, Emma Obe, spokesperson of the Civil Liberties Organisation in Rivers, described the emergency administration as unconstitutional. He said the 2025 state budget was passed without public engagement, denying citizens the opportunity to scrutinise spending plans.

Obe maintained that any administration that handles public funds must account for its expenditures and warned that legal actions may follow if transparency is not ensured.

Both organisations insisted that the Ibas administration failed to show financial transparency and reiterated calls for a comprehensive public audit of the state’s finances since March.

In response, Ibas rejected the Assembly’s plan to investigate his administration, arguing that the lawmakers lacked the authority to do so since they did not appoint him.

His media aide, Hector Igbikiowubu, told The PUNCH that the Assembly’s efforts were misplaced and suggested that such a probe would indirectly be questioning the authority of President Tinubu and the National Assembly, which oversaw his appointment and tenure.

Igbikiowubu stated that while lawmakers are free to express concerns, probing the administrator equates to probing the federal government.

He described the Assembly’s move as a “fool’s errand,” adding that the administrator acted solely on behalf of the President during the emergency period.

Meanwhile, Governor Fubara has resumed official duties and called for sustained prayers for peace and governance in the state.

Speaking at a thanksgiving service at St. Paul’s Anglican Church in Opobo Town on Sunday, Fubara expressed gratitude for the support he received during the six-month suspension.

He described prayer as a spiritual investment and urged residents to continue praying for his administration as he works to deliver on his mandate.

Fubara also emphasised the need for peace and unity in line with the International Day of Peace, and reiterated his commitment to serving the people of Rivers State.

Credit: The Punch

Not less than 1,263 mineral licenses will be deleted from the portal of the Electronic Mining Cadastral system of the Nigerian Mining Cadastral Office, MCO following their revocation by the Federal Government.

These include 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases.

By opening up the areas formerly covered by these licenses, the revocation is expected to spur fresh applications by investors looking for fresh opportunities.

Approving the revocation following the recommendation of the MCO, the Minister of Solid Minerals Development, Dr. Dele Alake said applying the law to keep speculators and unserious investors away from the mining sector would make way for diligent investors and grow the sector.

“The era of obtaining licences and keeping them in drawers for the highest bidder while financially capable and industrious businessmen are complaining of access to good sites is over. The annual service fee is the minimum evidence that you are interested in mining. You don’t have to wait for us to revoke the license because the law allows you to return the license if you change your mind,” the minister said.

He warned that the revocation does not mean the Federal Government has pardoned the annual service debt owed by licensees, adding that the list will be forwarded to the Economic & Financial Crimes Commission to ensure that debtors pay or face the wrath of the law.

“This is to encourage due diligence and emphasise the consequences of inundating the license application processes with speculative activities.”

In the recommendation to the minister, the Director-General of the MCO, Engr Simon Nkom disclosed that there were 1,957 initial defaulters when the MCO published the intention to revoke licences in the Federal Government Gazette on June 19, 2025.

He informed the minister that the gazette was distributed to MCO offices nationwide to sensitise licencees and encourage them to comply within 30 days in compliance with the Minerals and Mining Act 2007 and relevant regulations.

He observed that the delay in the final recommendation was due to complaints of several licensees who claimed to have paid to the Federal Government through Remita and had to be reconciled.

The latest revocation brings the total mineral titles revoked under the current administration to 3, 794 including,619 mineral titles revoked for defaulting in paying annual service fees and 912 for dormancy last year.

This is part of ongoing efforts at sanitizing the sector since the inception of the Tinubu administration and the salutary effects of the reforms are massive and manifest despite the attempts to push back by defaulters and their agents.

Segun Tomori, anipr, FSCA

Special Assistant on Media
to the Honourable Minister of Solid Minerals Development.

21st September, 2025.