With just weeks to the rollout of Dangote refinery’s direct-to-consumer fuel distribution scheme, oil suppliers in Nigeria have raised strong objections, urging the company to reverse its decision.
Beginning August 15, Dangote Refinery plans to deliver petrol, diesel, and jet fuel directly to filling stations, telecom companies, aviation operators, manufacturers, and other major consumers—cutting out the traditional depot and supplier network.
But the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has warned that the plan threatens thousands of jobs and could destabilize the country’s petroleum distribution chain.
In a statement issued to our correspondent, NOGASA President Benneth Korie said the proposed system would undermine existing supply structures and push many intermediaries out of business.
“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end users, especially MTN, companies, hotels, and all the rest of them,” Korie said. “Members of NOGASA are suppliers of petroleum products. By doing so, a lot of jobs are at stake, and we are kicking against this new way of supplying products to end users.”
According to the plan, Dangote will deploy 4,000 Compressed Natural Gas (CNG)-powered tankers across the country, effectively bypassing traditional depots and middlemen in the supply chain.
Members of NOGASA, who have long operated as the vital link between refineries and final consumers, fear the new system will render their services irrelevant.
“It will remove jobs from a lot of them, and some of our staff will be redundant, and some of our trucks will be redundant,” Korie warned.
To address the crisis, the association has scheduled a general meeting for July 31 in Abuja to develop a collective response, which may include a possible shutdown of operations or direct talks with Dangote Group.
“We are holding a general meeting on July 31 to decide whether to down tools and to find a way to ensure that Dangote will supply the product to them rather than supply to the end users. And we will, in turn, supply to the end users. These are chains of distribution,” he said.
Korie stressed that NOGASA is not against innovation in the industry but insists that any new model must accommodate existing players to safeguard jobs and maintain industry stability.