The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has expressed serious concern over the Dangote Refinery’s recent decision to distribute petroleum products directly to end users, bypassing established supply chain intermediaries.
NOGASA President, Benneth Korie, warned that the new model—set to commence on August 15, 2025—could destabilize the downstream oil sector, threaten thousands of jobs, and undermine existing business structures.
The Dangote Refinery had on June 15 announced plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers to deliver Premium Motor Spirit (PMS) and diesel directly to bulk consumers, including manufacturers, telecom firms, aviation companies, petrol station owners, and other large-scale users.
Reacting to the announcement, Korie said the shift would sideline NOGASA members, who traditionally serve as the link between refineries and end users.
“This new model where Dangote supplies directly to end users—telecom companies, hotels, and other institutions—threatens the very existence of our members. It puts thousands of jobs at risk and renders our trucks, drivers, and supply networks redundant,” he stated.
Korie noted that many NOGASA members operate fleets and employ hundreds of workers whose roles could become obsolete under the proposed structure.
The association fears a ripple effect on the broader economy due to loss of livelihoods and reduced activities in the logistics sub-sector.
To address the issue, NOGASA has scheduled a general meeting for July 31 in Abuja.
The meeting will explore possible responses, including direct engagement with the Dangote Group and the option of suspending operations if necessary.
“We are not against innovation, but any distribution model must consider its impact on existing players. We are calling for a balanced structure where Dangote supplies to NOGASA members, who in turn serve the end users. This preserves both efficiency and employment,” Korie said.
The association urged all stakeholders to prioritize sustainability and inclusiveness in restructuring the petroleum distribution chain, warning that abrupt shifts could create instability in an already fragile sector.
NOGASA maintains that intermediaries are essential not only for logistics but for maintaining industry balance, especially in rural and underserved areas.
It called on the federal government and regulatory agencies to engage with all parties to ensure that reforms do not come at the expense of jobs and small-scale operators.
Writing by Gwamkat Gwamzhi