NOGASA President, Mr. Korie, addresses concerns over Dangote’s direct fuel supply model at a press briefing in Abuja.
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has expressed deep concern over the Dangote Refinery’s decision to supply fuel products directly to large-scale end users, bypassing traditional depots and intermediaries in the petroleum distribution chain.
The development, announced by the refinery on June 15, 2025, includes plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers for the nationwide distribution of Premium Motor Spirit (PMS) and diesel directly to marketers, manufacturers, telecom companies, aviation firms, and other major consumers.
Speaking on the matter, NOGASA President, Mr. Korie, described the move as a significant disruption to the sector’s long-standing distribution structure.
“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end users especially MTN, hotels, telecom companies, and other big firms,” Korie said.
“Our members serve as suppliers and intermediaries. This new approach will render many of them and their staff redundant.”
Korie warned that the implications are far-reaching, with potential job losses among drivers, logistics personnel, and small-scale marketers whose operations depend on the traditional supply chain.
“It’s not just about suppliers. Truck drivers, depot staff, and logistics coordinators will all feel the impact. If this model takes full effect, a lot of jobs are at stake, and that’s not healthy for the economy or the oil and gas industry,” he added.
NOGASA has scheduled a general meeting for July 31 in Abuja, where members will deliberate on a unified response. The agenda will include exploring legal and strategic channels to engage Dangote and relevant stakeholders, with the possibility of industrial action if necessary.
The association is advocating for a hybrid distribution structure, where Dangote continues production but supplies through established intermediaries to ensure the sustainability of businesses operating in the midstream and downstream sectors.
“We are not against progress,” Korie emphasized, “but the progress must be inclusive. The supply chain must be protected because it holds thousands of jobs and supports economic stability.”
NOGASA also called on the Federal Government, industry regulators, and stakeholders to intervene, stressing that the bypassing of intermediaries could destabilize the entire fuel distribution ecosystem.
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