With just weeks to the rollout of the Dangote Refinery’s direct fuel distribution scheme, key players in Nigeria’s oil and gas supply chain are voicing strong opposition to the initiative, warning of potential mass job losses.
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged the refinery to reconsider its plan to bypass the traditional distribution network and supply fuel directly to end-users, including telecom firms, manufacturers, aviation operators, and filling stations, starting August 15.
In a statement to PUNCH, NOGASA President Benneth Korie said the move threatens to destabilize the existing supply chain and make thousands of workers—including drivers, logistics staff, and middlemen—redundant.
“This new trend where Dangote supplies directly to companies like MTN, hotels, and other large consumers sidelines NOGASA members who serve as intermediaries,” Korie said. “Many jobs are at stake, and we are kicking against this.”
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The concern follows confirmation that the refinery will deploy 4,000 CNG-powered tankers for nationwide delivery of petrol, diesel, and jet fuel, effectively cutting out third-party depots and traditional distributors.
Korie warned that if the scheme proceeds, it will render many supply chain businesses “useless” and lead to underutilisation of staff and assets.
“We fear redundancy of our trucks, our drivers, and our support staff. This plan sidelines the core of our operations,” he said.
To address the issue, NOGASA has scheduled a crucial meeting for July 31 in Abuja. The agenda includes the possibility of industrial action and direct engagement with Dangote Group to negotiate a more inclusive distribution model.
“We want Dangote to supply to us, and then we’ll distribute to the end-users. That’s how the chain should work,” Korie emphasised.
The upcoming meeting could determine the next steps for thousands of fuel suppliers who now feel excluded from the evolving structure of Nigeria’s downstream sector.
Image Credit: Premium Times Nigeria
