…We want Dangote Refinery to supply its products to NOGASA members, who will then distribute to final consumers.
LAGOS, NIGERIA – The iNews Times reports that the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised alarm over plans by the Dangote Refinery to begin direct supply of petroleum products to end users, warning that the move could disrupt the nation’s downstream sector and threaten thousands of jobs.
Dangote Refinery had announced it would from August 15 deploy 4,000 compressed natural gas (CNG)-powered tankers to distribute Premium Motor Spirit (PMS) and diesel directly to major consumers including marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and hotels, effectively cutting off traditional intermediaries in the supply chain.
But in a statement issued on Monday, NOGASA President Benneth Korie described the decision as a “disturbing shift” in the distribution model of petroleum products in Nigeria.
Korie said the association’s members, who have long served as middlemen between refineries and final consumers, now fear for their jobs and investments, as Dangote’s new strategy could render their services redundant.
“This is the new trend in the oil and gas industry where Dangote is supplying directly to end users – companies like MTN, hotels, and other large organisations,” Korie said.
“Our members are suppliers of petroleum products, and this move puts a lot of jobs at risk. We are totally against this direct-to-consumer model.”
The association warned of a ripple effect that could lead to widespread job losses, particularly among truck owners, drivers, depot workers, and logistics staff dependent on the traditional supply structure.
Korie further disclosed that NOGASA has scheduled an emergency general meeting for July 31 at Chida Hotel, Abuja, to deliberate on a collective response. Top on the agenda is the possibility of taking industrial action or seeking dialogue with the Dangote Group to prevent the new distribution model from taking off.
The association is advocating for a structure where Dangote supplies its products to NOGASA members, who will then distribute to final consumers – a model they argue will protect jobs and sustain the existing business ecosystem in the downstream sector.
“We want Dangote to recognise the role of suppliers in the distribution chain. Our goal is to have an understanding that safeguards the industry and ensures no one is pushed out of business,” Korie added.
