The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised objections to plans by Dangote Refinery to supply petroleum products directly to end users, bypassing the traditional distribution chain.
NOGASA’s President, Benneth Korie, in a statement on Monday, said the move could disrupt the oil and gas industry, putting thousands of jobs at risk and jeopardising the existing business models of suppliers nationwide.
Recall that Dangote Refinery recently announced plans to begin direct supply of petroleum products to end users from Aug. 15.
The refinery said 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 and manufacturers.
The company added that it supply petroleum products directly to telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.
Reacting, Korie said Dangote’s decision to supply products directly to large organisations, such as telecommunications giants and hotels, marked 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.”
Highlighting the consequences, he said NOGASA members and their employees could lose their jobs.
added that redundancy of trucks, drivers, and other logistical staff looms, as a direct result of the bypassed supply chain.
The president said it would have a ripple effect not just on the livelihoods of their members, but also on the Nigerian economy.
He said NOGASA’s general meeting, scheduled for July 31, would 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 for a distribution structure where Dangote supplies products to NOGASA members, who will then sell to the end users, preserving jobs within the supply chain.
“Bypassing the traditional distribution mechanism is not healthy for the oil and gas industry and poses risks to its stability.
“The association is calling on all stakeholders to recognise the vital role that suppliers play—not only in logistics but also in maintaining a balanced industry ecosystem,” Korie said.(NAN)
