Abuja, Nigeria— The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has expressed strong reservations over Dangote Refinery’s recent announcement to supply petroleum products directly to end-users, bypassing established distribution channels.
NOGASA President Benneth Korie warned that this strategy—set to launch on August 15, 2025, with the deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers—could disrupt the industry’s established supply chain, threatening thousands of jobs across the country.
Dangote Refinery plans to deliver Premium Motor Spirit (PMS) and diesel directly to marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and other major consumers, eliminating intermediaries such as traditional depots and suppliers.
Korie highlighted that many NOGASA members operate as crucial intermediaries connecting refineries to final consumers. The new model sidelines these suppliers, potentially rendering their roles—and the jobs of their staff like truck drivers—obsolete.
“Dangote’s direct supply to large organizations such as MTN, hotels, and other firms threatens many jobs. We oppose this shift as it endangers livelihoods,” Korie stated.
The association plans to convene a general meeting to develop a collective response, which could include industrial actions and engaging Dangote Refinery directly to seek an amicable solution.
NOGASA advocates for a distribution arrangement where Dangote supplies its products to NOGASA members, who would then distribute to end customers, thus preserving employment throughout the supply chain.
The group calls on all stakeholders to acknowledge and protect the vital role of suppliers in ensuring logistical efficiency and maintaining balance within Nigeria’s oil and gas industry.
By Enoch Odesola | July 21, 2025
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