Less than a month before the Dangote Refinery begins its direct fuel distribution initiative, Nigerian oil suppliers have called on the company to reconsider its strategy.
Starting August 15, Dangote plans to distribute fuel petrol, diesel, and jet fuel directly to filling stations, telecom firms, airlines, manufacturers, and other large-scale consumers. This would bypass traditional depots and eliminate the role of intermediaries in the supply chain.
However, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has voiced strong opposition.
In a statement, the association’s president, Benneth Korie, warned that the new distribution model could result in widespread job losses across the petroleum supply chain.
“This new model where Dangote supplies directly to end-users telecom companies like MTN, hotels, manufacturers will effectively render NOGASA members redundant,” Korie said.
M“We are suppliers of petroleum products. If this approach goes forward, thousands of jobs are at stake, including those of truck drivers, logistics workers, and administrative staff.”
Korie’s remarks confirm growing unease in the industry, previously reported by Sunday PUNCH, as Dangote prepares to deploy 4,000 new Compressed Natural Gas-powered tankers nationwide.
NOGASA members typically serve as intermediaries between refineries and retail outlets. Under the new arrangement, their role would be eliminated something the association says is unacceptable.
“This model threatens our livelihoods,” Korie stated. “Many trucks will sit idle, and workers will lose their jobs. This isn’t just about business—it’s about people’s lives.”
NOGASA has scheduled a general meeting for July 31 in Abuja to strategize. According to Korie, the association may consider industrial action and direct talks with Dangote to advocate for a revised approach.
“Our proposal is simple: Dangote should continue to supply products to NOGASA members, who would then distribute to end-users. This maintains the supply chain and protects jobs,” he explained.
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