Economy
Dangote PMS Supply: Otedola Urges DAPPMAN to Change Business Model
By Adedapo Adesanya
Nigerian businessman, Mr Femi Otedola, has shown support to his ally, Mr Aliko Dangote, amid his ongoing tussle with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) over his new petroleum supply model.
In a statement issued on Sunday on recent developments in the downstream sector, Mr Otedola praised the Dangote Petroleum Refinery’s entry into local fuel supply, describing it as a “historic leap for Nigeria’s energy independence and economic future.”
He further described the refinery’s operations as part of a broader transformation that is making Nigeria’s energy market more efficient and accountable, noting that the President Bola Tinubu administration has fully deregulate the downstream petroleum sector, stressing, “This singular act has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery,”
He added that deregulation dismantled systems that encouraged subsidy fraud, product diversion, and smuggling, pointing out he founded the association in 2002 to give independent depot owners a platform to thrive, but argued that many are resisting inevitable change.
The business mogul warned that the old business model built around imports and Product Forwards/Payments from the Nigerian National Petroleum Company (NNPC) is crumbling now that local refining and supply have arrived.
“You can delay change, frustrate it, even sabotage it, but you can never stop it,” Mr Otedola said, urging members to adapt or exit while their assets still hold value.
He pointed out that Nigeria now reportedly has over 4 million metric tonnes of storage capacity, much of it idle, while the Dangote Refinery is supplying fuel locally.
Mr the son of a former Governor of Lagos State, Mr Michael Otedola, also questioned DAPPMAN’s demand that Dangote Refinery should pay N1.5 trillion, emphasising that these funds would simply be passed on to consumers and recalled past abuses under subsidy regimes, saying “over N2 trillion was siphoned through questionable claims” tied to depot licenses.
He also highlighted downstream benefits beyond fuel production, noting Dangote’s investments in logistics including the purchase of 10,000 new CNG eco-friendly trucks and dry cargo carriers.
Mr Otedola argued that these vehicles will reduce pollution, lower breakdowns, and unclog gridlock at major ports and terminals.
Drawing on his own depot and tanker-business experience, he suggested depot ownership no longer delivers the employment or returns some claim.
Mr Otedola counselled that rather than fight reform, DAPPMAN members should explore strategic options such as sell or repurpose depots, invest in last-mile retail (filling stations), restructure, or even combine resources to acquire and run existing refining capacity.
He held up the Folawiyo Group’s early exit from depots as a model of foresight, and warned that failure to adapt could lead to irrelevance or bankruptcy.
In closing, he proposed an unequivocal endorsement of Dangote’s role in the sector’s transformation.
“Aliko’s refinery is not the problem. It is the solution. Let’s move forward.
“Africans are proud of you. And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it,” he remarked.
By Adedapo Adesanya
Market bellwethers, Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc, lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.08 per cent on Monday, August 3.
CSCS Plc, the Nigerian securities depository company, gained N10.00 to close at N112.00 per share compared with the previous session’s N102.00 per share, and FrieslandCampina Wamco Nigeria Plc advanced by N4.71 to quote at N152.64 per unit versus last Friday’s N147.93 per unit.
As a result, the NASD Security Index (NSI) added 92.14 points to finish at 4,523.85 points compared with the preceding session’s 4,431.71 points, and the market capitalisation appreciated by N55.31 billion to N2.715 trillion from N2.659 trillion.
Business Post reports that the price of MRS Oil Plc crashed during the trading day by N12.00 to N120.00 per share from N132.00 per share, and UBN Property Plc dipped by 3 Kobo to N1.90 per unit from N1.93 per unit.
Trading data showed that the volume of securities exchanged rose by 113.1 per cent to 1.5 million units from 690,990 units, and the number of deals climbed by 19.2 per cent to 31 deals from 26 deals, while the value of securities slid by 13.1 per cent to N65.2 million from N75.0 million.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 76.8 million units traded for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has introduced a 1.5 per cent stamp duty on eligible virtual asset transactions, with the tax deducted directly from the cryptocurrency purchased before it is credited to the buyer’s wallet.
According to the new guidelines issued on Monday, anyone buying Bitcoin (BTC), USDT or other cryptocurrencies in Nigeria will receive fewer digital assets due to the deduction.
This requires registered crypto exchanges and other Virtual Asset Service Providers (VASPs) to withhold the levy in the digital asset being traded and remit it to the government, marking Nigeria’s most comprehensive move yet to bring cryptocurrency transactions into the country’s tax net.
Unlike traditional taxes deducted from a customer’s bank account, the 1.5 per cent charge will be taken from the cryptocurrency itself, meaning buyers will receive less Bitcoin, USDT or other tokens than they paid for.
The tax body stated that “income tax deducted at source and stamp duty shall be remitted to the service in the originating token of the transaction.”
Besides the new stamp duty, the guidelines also clarify how income tax, Value Added Tax (VAT) and other tax obligations will apply to virtual asset activities such as trading, staking, mining and other crypto-related transactions.
To illustrate the new rule, the tax authority said a buyer who pays N1 million for one Bitcoin will receive only 0.985 BTC after 0.015 BTC is deducted as stamp duty and remitted to the government. When that Bitcoin is later sold, the next buyer will also have 1.5 per cent deducted from the cryptocurrency credited to their wallet.
The NRS said the guidelines are intended to provide clarity for taxpayers, crypto exchanges, peer-to-peer (P2P) marketplace operators, financial institutions, tax consultants and all participants in Nigeria’s virtual asset ecosystem.
According to the guidelines, the 1.5 per cent duty applies to eligible virtual asset transactions facilitated through registered exchanges and other recognised intermediaries. Where a cryptocurrency is used to complete a transaction that already attracts stamp duty under the law, the applicable duty on the underlying instrument will also be payable.
For crypto users, the implication is higher transaction costs, as eligible purchases will attract the 1.5 per cent stamp duty, while VAT on exchange service fees and income tax on taxable gains may also apply, depending on the nature of the transaction.
By Adedapo Adesanya
The Naira opened the week on a positive note, as it appreciated against the US Dollar by N3.39 or 0.25 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 3, to N1,364.83/$1 from N1,368.22/$1 last Friday.
However, it suffered a marginal decline against the Pound Sterling in the official market during the session by 10 Kobo to close at N1,837.89/£1 compared with the preceding session’s N1,837.79/£1, and lost 6 Kobo on the Euro to sell at N1,573.93/€1, in contrast to the previous trading day’s N1,573.87/€1.
At the black market segment, the Nigerian currency traded flat against the Dollar yesterday at N1,405/$1, and at the GTBank forex counter, it was unchanged at N1,374/$1.
Interbank FX transactions increased sharply as market makers’ activities raised total Dollar volume exchanged to $137.048 million, more than 132 per cent above $58.990 million in turnover at the previous close. The surge in turnover was driven by increased deals at the NFEM window. The central bank reported that deal count at the interbank FX window rose to 138 from 67 on Friday.
As for the cryptocurrency market, major tokens advanced despite ongoing uncertainty around unresolved Coldcard wallet sweeps that have drained hundreds of Bitcoin (BTC), while traders are watching whether bitcoin can hold above $63,000 through the US session. BTC rose by 1.70 per cent to $63,765.88.
Bitcoin treasury firm Strategy disclosed Monday it sold 1,638 bitcoin for about $105 million between July 27 and Aug. 2, its third sale of 2026, per an SEC filing.
Also, an attacker has moved about 1,816 bitcoins, or roughly $114 million, from more than 5,200 addresses since July 30 in a fourth wave of sweeps targeting BTC in Coldcard-generated addresses.
Cardano (ADA) appreciated by 6.7 per cent to $0.1959, Binance Coin (BNB) gained 1.5 per cent to sell for $590.82, Solana (SOL) jumped by 1.3 per cent to $73.72, TRON (TRX) soared by 0.9 per cent to $0.3286, Dogecoin (DOGE) also grew by 0.9 per cent to $0.0703, Ripple (XRP) advanced by 0.5 per cent to $1.07, and Ethereum (ETH) rose by 0.4 per cent to $1,863.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
