Dangote’s Direct Fuel Supply Plan Sparks Fears of Monopoly, Job Losses – NOGASA

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has expressed strong opposition to the planned direct supply of petroleum products by Dangote Refinery to end users, warning that the move could destabilise the supply chain and threaten thousands of jobs across the country.

In a statement released on Monday, NOGASA President Benneth Korie sharply criticized the refinery’s new distribution model, calling it “dangerous to the survival” of the suppliers and logistics operators who act as intermediaries between producers and consumers.

Persecondnews recalls that Dangote Refinery, which announced its new supply plan on June 15, said it would begin direct distribution of Premium Motor Spirit (PMS) and diesel to major consumers including manufacturers, telecommunications firms, aviation companies, and hospitality businesses starting August 15.

The company intends to deploy 4,000 Compressed Natural Gas (CNG) powered tankers to execute the plan, effectively bypassing the traditional depot and supply system.

“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end users companies, hotels, and telecom giants like MTN,” Korie stated.

“Our members, who are suppliers and transporters of petroleum products, risk losing their jobs, and we’re kicking against this development.”

According to Korie, the implications are far reaching with drivers, truck owners, logistics personnel, and depot workers being rendered redundant if the refinery proceeds with its new approach.

“This will remove jobs from a lot of people. Some of our staff will be out of work, some of our trucks will be grounded. It will disrupt the entire distribution structure.”

Meanwhile, NOGASA has scheduled a general meeting for July 31 at Chida Hotels, Abuja.

The agenda includes deliberations on possible industrial action and a resolution seeking dialogue with Dangote Refinery to review the supply plan.

“Our demand is simple Dangote should supply products to us, and we will then distribute to the end users. That’s how the supply chain works. It ensures jobs are preserved and the system remains stable,” Korie said.

He added that the association is committed to protecting the roles of suppliers in the petroleum sector, noting that any attempt to marginalize them would set a dangerous precedent for the industry.

“Bypassing traditional suppliers is not healthy for the oil and gas sector. It puts the industry’s stability and workforce at risk,” he said.

NOGASA called on government regulators and industry stakeholders to intervene and ensure a fair, inclusive distribution framework that supports both innovation and employment.