A former Minister of Interior, Emmanuel Iheanacho, has reacted to a statement credited to billionaire businessman, Femi Otedola that depot owners should dismantle their facilities and sell them as scrap.
Otedola made the submission on the occasion of the commencement of operations by the Dangote refinery.
Iheanacho, however, insisted that depot owners have an indispensable role to play towards the delivery of Dangote petroleum products.
Speaking via a statement, the former minister, who is also a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), maintained that petroleum products storage depots are a vital component of the fuel supply chain that are complementing primary fuel sources.
He explained that without these depots, other players in the supply chain would struggle to deliver fuel to consumers.
The oil magnet said, “While there might be competitive elements in the market, collaboration and cooperation are essential towards ensuring a stable fuel supply in Nigeria.
“Petroleum depots are not a replacement for primary fuel sources but are crucial for storing and distributing products to meet demands.’’
Iheanacho also noted that while private depots may compete with the Nigerian National Petroleum Corporation Ltd. (NNPC) in terms of storage and distribution, they are not necessarily in direct competition with the NNPC or the Dangote Refinery.
“Instead, these depots often work in conjunction with both to support a reliable fuel supply chain. Private depots may compete with petroleum importers for market share by offering essential storage and distribution services. Ultimately, competition aims to balance market prices”, he added.
He argued that depots are key partners in supporting the entire supply chain, including NNPC and Dangote.
The former Minister explained that depots provide critical storage and distribution support not only for NNPC and Dangote but also for petroleum importers, ensuring a more efficient and reliable fuel supply network.
