The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has raised strong objections to Dangote Refinery’s plan to supply petroleum products directly to end users, warning that the move could create a monopoly and lead to widespread job losses across the oil and gas value chain.
NOGASA President, Benneth Korie, expressed concern that the new distribution model—scheduled to begin on August 15, 2025 would bypass traditional supply channels, sidelining marketers and suppliers who have served as intermediaries between refineries and final consumers.
Dangote Refinery recently announced it would directly distribute Premium Motor Spirit (PMS) and diesel to petrol dealers, manufacturers, telecom companies, aviation firms, hotels, and other large-scale users. The plan includes deploying 4,000 Compressed Natural Gas (CNG)-powered tankers to eliminate reliance on third-party depots and logistics providers.
“This is the new trend in the oil and gas industry where Dangote is now supplying products directly to end users like MTN, companies, hotels, and others,” Korie said. “Members of NOGASA are the traditional suppliers. By doing this, a lot of jobs are at stake. We are kicking against this new distribution model.”
Korie stressed that the exclusion of NOGASA members from the new supply chain could render thousands of workers redundant, including truck drivers and logistics personnel. He warned of a ripple effect on the wider economy, as many suppliers would struggle to remain operational under the new system.
The association fears that the direct-to-consumer approach will not only erode their market share but also destabilise the industry’s long-standing distribution framework.
“This strategy will make many of our trucks and workers redundant. It’s not healthy for the oil and gas industry,” he added.
In response to the situation, NOGASA has scheduled a general meeting on July 31 at Chida Hotels, Abuja. The meeting will focus on formulating a unified response, with options on the table including tool-down protests and engagement with Dangote management to negotiate a revised supply structure.
“We want a model where Dangote supplies us, and we then supply the end users. These are chains of distribution that must be preserved to protect jobs and ensure industry stability,” Korie said.
He urged all stakeholders to recognise the critical role suppliers play in sustaining the sector, noting that a monopoly would harm competition and hurt the economy in the long term.