The Natural Oli & Gas Suppliers Association of Nigeria (NOGASA) has raised concerns over recent plans by Dangote Refinery to supply petroleum products directly to end-users, bypassing the traditional distribution chain.
Benneth Korie, the President of NOGASA, said the move could significantly disrupt the oil and gas industry, putting thousands of jobs at risk and jeopardising existing business models of suppliers nationwide.
The Dangote Refinery had announced plans to begin direct supply of petroleum products to end users effective August 15, 2025.
The refinery had disclosed that it would deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers for nationwide distribution of Premium Motor Spirit (PMS) and diesel directly to marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.
Korie stated that Dangote’s decision to supply products directly to large organisations, such as telecommunications giants and hotels, marks a notable shift in the sector.
Members of NOGASA, who serve as intermediaries between refineries and final consumers, fear that this new distribution model will render their roles obsolete.
“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.
“Members of NOGASA are suppliers of petroleum products.
“By so doing, a lot of jobs are at stake and we are kicking against this new way of supplying products to end users,” Korie stated.
Korie maintained that many NOGASA members and their employees could lose their jobs.
The redundancy of trucks, drivers, and other logistical staff looms as a direct result of the bypassed supply chain.
This, according to the association, would have a ripple effect not just on the livelihoods of their members, but also on the Nigerian economy.
He said NOGASA has scheduled a general meeting and the agenda will focus on developing a unified strategy to address the issue, including the possibility of downing tools and direct engagement with Dangote to seek a resolution.
The association is seeking to advocate distribution structure where Dangote supplies products to NOGASA members, who will then sell to the end users, preserving jobs within the supply chain.
The association is calling on all stakeholders to recognize the vital role that suppliers play, not only in logistics but also in maintaining a balanced industry ecosystem.
Source – FRCN
(vitalnewsngr.com)
