Victor EzejaPlans by Dangote refinery to begin direct supply of petroleum products to end users have been met with opposition by Natural Oil & Gas Suppliers Association of Nigeria (NOGASA).
The group said the move, which would lead to bypassing the existing distribution chain, might severely disrupt the oil and gas sector, affecting thousands of jobs and threatening the current business models of suppliers across the country.
Join our WhatsApp ChannelIt would be recalled that Dangote refinery had in June announced plans to deploy 4,000 CNG-powered tanker trucks for direct supply of premium Motor Spirit (PMS) and Diesel to bulk consumers, including manufacturers, telecom firms, aviation companies, petrol station owners, and other large-scale users across the country.
It said the gesture, which comes at no cost in terms of logistics to the marketers, would help to make petroleum products not only cheaper but also accessible across the country. The distribution scheme, which will cost the refinery about N720 billion, and is expected to save Nigerians over N1.7 trillion annually, will commence on 15 August.
Reacting to that, NOGASA in a statement released on Monday, signed by its President, Benneth Korie, said the move would sideline NOGASA members, who traditionally serve as the link between refineries and end users.
“This new model where Dangote supplies directly to end users—telecom companies, hotels, and other institutions—threatens the very existence of our members. It puts thousands of jobs at risk and renders our trucks, drivers, and supply networks redundant,” NOGASA stated.
According to NOGASA, many of its members operate fleets and employ hundreds of people whose jobs may become obsolete under the proposed structure.
The group expressed concerns about the broader economic impact of job losses and reduced activity in the logistics sub-sector.
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The statement, however, revealed that a general meeting of the association has been scheduled for 31 July, Abuja, to address the issue, and come up with possible responses, including direct engagement with the Dangote Group and the option of suspending operations if necessary.
“We are holding a general meeting on 31st, 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,” Korie stated.
“NOGASA insists that bypassing the traditional distribution mechanism is not healthy for the oil and gas industry and poses risks to its stability.”
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The association called on all stakeholders to recognize the vital role that suppliers play, pointing out that it is not only in logistics, but also in maintaining a balanced industry ecosystem.
“We are holding a meeting on 31st of July at Chida Hotels to have a resolution and meet up with Dangote to ensure that they will have a relationship where Dangote should not supply products to end users. So that is the story. NOGASA kicks against Dangote for the direct supply to end users,” Korie stated.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
