Capt. Emmanuel Iheanacho, the Chairman of Integrated Oil and Gas Ltd., has underscored the vital role that depot owners play in Nigeria’s fuel supply chain, particularly in light of the recent delivery of Dangote Premium Motor Spirit (PMS). Speaking on Wednesday, Iheanacho emphasized that depots are indispensable in maintaining the efficiency and reliability of the nation’s fuel distribution network.
Iheanacho’s comments were made in response to a statement by billionaire and Chairman of FBN Holdings, Mr. Femi Otedola, who recently suggested that Nigerian depot owners should dismantle their facilities and sell them as scrap following the entry of Dangote’s PMS into the market. Iheanacho, who also serves as a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), strongly refuted this notion, arguing that petroleum depots remain an essential part of the fuel supply ecosystem.
“Petroleum products storage depots are a fundamental component of the fuel supply chain,” Iheanacho stated. “They work in tandem with primary fuel sources to ensure that fuel reaches consumers efficiently and reliably. Without these depots, the delivery of fuel across Nigeria would face significant challenges.”
He further explained that while competition within the fuel market is inevitable, collaboration between depot owners, the Nigerian National Petroleum Corporation Ltd. (NNPC), and the Dangote Refinery is crucial for maintaining a stable and balanced supply chain. Iheanacho highlighted that depots are not in direct competition with these larger entities; rather, they complement their operations by providing essential storage and distribution services.
“Private depots may vie for market share alongside petroleum importers, but their primary role is to offer vital support in storing and distributing fuel, which ultimately helps to stabilize market prices,” he added. “These depots are key partners in ensuring that Nigeria’s fuel supply chain remains robust and efficient.”
Iheanacho reaffirmed the indispensable role of depot owners in the nation’s fuel distribution network, stressing that their operations are integral to supporting not only NNPC and Dangote but also the broader petroleum importation framework. By providing critical storage and distribution infrastructure, depot owners help ensure a more efficient and reliable fuel supply across Nigeria.
