The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has expressed strong opposition to Dangote Refinery’s plan to supply petroleum products directly to end users, warning that the move could threaten thousands of jobs and destabilise the distribution structure of the downstream sector.
In a statement on Monday, NOGASA President, Benneth Korie, said the association is concerned that bypassing traditional intermediaries could render many suppliers and logistics workers redundant.
Dangote Refinery had earlier announced plans to begin direct supply of petroleum products, including Premium Motor Spirit (PMS) and diesel, to manufacturers, telecom operators, aviation firms, and petrol dealers starting August 15. The refinery also revealed it would deploy 4,000 Compressed Natural Gas (CNG) powered tankers nationwide to facilitate distribution.
“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,” Korie said.
“Members of NOGASA serve as the link between refineries and final consumers. This model risks rendering their roles obsolete, and by extension, putting many livelihoods in jeopardy.”
He noted that many truck drivers, logistics workers, and suppliers could lose their jobs, and the ripple effect could impact the wider economy.
Korie said the association’s general meeting scheduled for July 31 would focus on formulating a coordinated response to the development. He hinted at the possibility of industrial action or a formal engagement with Dangote Group to seek a compromise.
NOGASA is advocating for a structure where Dangote supplies products to its members, who would then distribute to end users, in a bid to sustain jobs and preserve the industry’s supply chain balance.
“Bypassing the traditional distribution mechanism is not healthy for the oil and gas industry and poses a risk to its long-term stability,” Korie said.
He called on stakeholders to recognise the critical role suppliers play, not only in logistics but in ensuring a functional and equitable petroleum distribution system.