Depot Owners Play Vital Role in Refined Products Distribution, Says Iheanacho
Depot owners are essential to the fuel distribution network in Nigeria, according to Capt. Emmanuel Iheanacho, Chairman of Integrated Oil and Gas Ltd. He emphasized their critical role, particularly in the delivery of Premium Motor Spirit (PMS) from the newly operational Dangote Refinery.
Iheanacho made these remarks in response to a statement by billionaire and Chairman of FBN Holdings, Mr. Femi Otedola, who suggested that depot owners consider selling their facilities as scrap due to the advent of Dangote’s PMS.
As a key member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Iheanacho countered Otedola’s suggestion, highlighting the integral role that depots play in the nation’s fuel supply chain. He clarified that while primary sources like the Dangote Refinery are crucial, depots serve as essential storage and distribution hubs that ensure smooth fuel delivery across Nigeria.
“Without depots, other aspects of the supply chain would struggle to ensure fuel reaches consumers,” Iheanacho stated. He stressed that despite market competition, collaboration between various stakeholders is necessary to maintain stability in Nigeria’s fuel supply.
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Iheanacho underscored that depots are not in direct competition with entities like the Nigerian National Petroleum Company Ltd. (NNPCL) or Dangote Refinery but rather operate in partnership to enhance fuel distribution. While private depots may vie for market share, they offer key storage and logistical services that support the entire fuel supply chain.
“Ultimately, competition serves to balance market prices, but depots remain vital in ensuring the efficient and reliable delivery of fuel across the country,” Iheanacho added.
He concluded by reiterating that depots are indispensable in the storage and distribution of petroleum products, working alongside NNPCL, Dangote, and other fuel importers to sustain a robust and reliable fuel network in Nigeria.
