Oil entrepreneurs on Tuesday pushed again billionaire businessman Femi Otedola’s criticism of petroleum depot companies.
The oil entrepreneurs, by means of the nationwide president, the Petroleum Merchandise Retail Retailers Homeowners Affiliation of Nigeria (PETROAN), Billy Gillis-Harry, faulted Mr Otedola’s recommendation to depot house owners to scale last-mile stores, quite than holding on to tanks constructed for a gasoline import financial system that not serves the nation.
Mr Gillis-Harry famous that Mr Otedola’s suggestion to members of Depot and Petroleum Merchandise Entrepreneurs Affiliation of Nigeria (DAPPMAN) was to “scrap” their depots, a name the PETROAN president described as insensitive to the struggles of businessmen.
“Otedola’s view on entrepreneurs innovating and restructuring shouldn’t be a considerate assertion,” Mr Gillis-Harry stated in an interview on Channels Tv on Tuesday. He requested whether or not Mr Otedola was suggesting that every one the investments made within the sector ought to merely be wasted.
In a press release on Sunday, Mr Otedola criticised the depot house owners’ enterprise mannequin which he stated may land them in chapter.
He stated this, expressing sturdy assist for Aliko Dangote, founder and president/chief government of the Dangote Group, in his dispute with DAPPMAN. DAPPMAN had criticised Dangote for bypassing conventional depots in provide petrol from his refinery to the Nigerian market, arguing that direct provide may threaten their investments.
Nevertheless, Mr Otedola stated with Nigeria now refining gasoline domestically, such infrastructure was turning into more and more pointless.
He cited examples of depots in Amsterdam and Houston, which had been designed to serve export markets, significantly in Africa.
“If something, DAPPMAN members ought to be specializing in proudly owning and scaling last-mile stores, not holding on to tanks constructed for a gasoline import financial system that not serves us.
“The worldwide image is instructive. Depots in Amsterdam or Houston had been designed to serve export markets, particularly Africa. With Nigeria now refining domestically, such infrastructure is more and more pointless. If DAPPMAN members don’t adapt, they won’t solely change into irrelevant, they might go bankrupt,” Mr Otedola stated.
He stated DAPPMAN ought to take into account promoting, restructuring, or investing in new worth chains, including that if they really imagine in competitors, they might even come collectively and purchase the Port Harcourt Refinery and see if they might succeed the place the Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd) couldn’t.
However Mr Gillis-Harry stated on Tuesday that whereas innovation introduced new developments and phased out outdated practices, sure buildings would stay related.
He stated Mr Otedola’s views had been debatable, given his expertise as a former DAPPMAN member and the trouble it took him to spend money on that space.
“In contrast to him, many others haven’t been in a position to transfer as shortly. Advising others to desert their investments is a matter he ought to take into account rigorously earlier than providing such steerage,” Mr Gillis-Harry stated.
He added that DAPPMAN’s services are unfold throughout Nigeria, together with Port Harcourt, Calabar, Oghara, and Lagos to ease product distribution.
READ ALSO: Otedola backs Dangote in battle with DAPPMAN
He stated though DAPPMAN’s management can converse for themselves, “it might be unwise for Nigerians who’ve invested closely to scrap their ventures.”
Dangote vans alone received’t resolve product distribution challenges
Additionally, the PETROAN president stated Dangote Refinery’s newly launched CNG-powered vans wouldn’t be sufficient to make sure efficient distribution of petroleum merchandise throughout Nigeria.
He stated the investments of oil entrepreneurs within the downstream sector shouldn’t be ignored. “All we’re asking for is inclusion, as a result of there is no such thing as a method Dangote’s vans will probably be sufficient to provide merchandise” to the nooks and crannies of the nation, Mr Gillis-Harry famous.
He stated oil entrepreneurs had been additionally investing in CNG vans like Dangote. He stated all they need “is to make sure seamless and efficient provides to even areas the place Dangote’s vans can not attain.”
