The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has expressed strong opposition to the planned direct distribution of petroleum products by Dangote Refinery to end users, warning that the move could threaten thousands of jobs and destabilize the country’s oil and gas distribution structure.
The president of NOGASA, Benneth Korie, voiced these concerns in a statement issued in Abuja on Monday, following Dangote Refinery’s announcement on June 15, 2025, that it would begin direct supply of Premium Motor Spirit (PMS) and diesel to end users starting August 15.
The refinery said it would deploy 4,000 Compressed Natural Gas (CNG)-powered tankers nationwide to deliver products directly to large consumers, including marketers, telecom companies, manufacturers, hotels, and airlines bypassing traditional depots and intermediaries.
According to Korie, this shift poses an existential threat to NOGASA members, who serve as intermediaries between refineries and final consumers.
“This is a new trend in the oil and gas industry, where Dangote is now supplying products directly to end users, especially companies like MTN, hotels, and others. This move will put a lot of our members out of business, and many jobs are at stake,” he said.
NOGASA fears that the new model could render many of its members’ trucks, drivers, and staff redundant, with broader implications for the Nigerian economy.
“It will remove jobs from a lot of them. Some of our staff and trucks will be redundant. This is not healthy for the oil and gas industry,” Korie added.
In response, the association has scheduled a general meeting for July 31, 2025, where members will discuss possible actions, including industrial action and negotiations with Dangote Refinery.
“We are holding a general meeting to decide whether to down tools and to ensure Dangote supplies the products to us, and we, in turn, distribute to the end users. These are chains of distribution that must be preserved,” Korie said.
NOGASA is urging industry stakeholders and regulators to intervene, stressing the importance of a balanced distribution framework that supports employment and maintains sector stability.
The association insists that while innovation in logistics is welcome, it should not come at the cost of dismantling established structures and livelihoods.
