Natural Oil and Gas Distributors have called on the Federal Government to ensure a level playing field in the oil and gas sector using the provisions of the Petroleum Industry Act (PIA), amid rising concerns over market dominance and potential job losses.
The stakeholders, under the auspices of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Retail Owners Association of Nigeria (PETROAN), made the call during a meeting in Abuja, where they expressed fears that recent developments, particularly the expansion of the Dangote Petroleum Refinery, could sideline existing players.
Their concerns follow Dangote Refinery’s investment of over N720 billion to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide distribution of petroleum products.
The initiative, slated to begin August 15, 2025, is projected to save Nigeria over N1.7 trillion annually and benefit more than 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and improving profit margins.
While the Dangote Group has lauded the project as a major step toward lowering transportation costs and inflation, industry operators warn that it could lead to market concentration, stifle competition, and cause widespread job and business losses.
Speaking at the meeting, NOGASA National President, Benedict Korie, said the oil and gas distribution network is built on a variety of systems and players, and warned against allowing a monopoly to emerge.
“We are not fighting anybody or having a problem with anybody, but what we want is a simple understanding and order in the oil and gas sector, particularly the downstream,” Korie said.
“The coming upstream of the refinery is a giant leap for the country, but it should not relegate other ventures. We are going to plead that Mr. President intervenes by telling Dangote to slow down.”
Echoing similar sentiments, PETROAN President, Prince Gillis Harris, cautioned that job losses and business shutdowns could occur if the downstream sector becomes overly centralized.
“With a production capacity of 650,000 barrels per day, now increased to 700,000 barrels, Dangote should be competing globally, not dominating local distribution,” Harris said.
“We’ve seen this play out in the cement industry, where a few players dominate. Have you bought cement for ₦150 lately? Today, it’s over ₦10,000. So, don’t be deceived—somebody is bleeding from this.”
Lending a legislative voice, Ahmed Saba, a member of the House Committee on Petroleum (Downstream), urged collaboration among stakeholders and reiterated that the Petroleum Industry Act was designed to foster a win-win environment for all operators.
Also speaking, Rear Admiral Mamman, representative of the Chief of Defence and Director of Logistics, emphasized the importance of safety and proper maintenance in petroleum distribution operations.On its part, the regulatory body, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented by Director of Liquids, Ngozi Nwankwo, assured stakeholders of its commitment to ensuring market stability, product availability, and energy security across the board.
The meeting concluded with a collective call for the Federal Government to act decisively to enforce competitive practices in line with the spirit and provisions of the PIA, to prevent systemic risks and ensure inclusive growth in the petroleum sector.
Reporting by Gwamkat Gwamzhi