The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has expressed strong opposition to Dangote Refinery’s planned direct distribution of petroleum products to end-users, warning that the move could threaten thousands of jobs and destabilise the country’s oil and gas distribution structure.
The president of NOGASA, Benneth Korie voiced these concerns in a statement issued in Abuja on Monday, following Dangote Refinery’s announcement on June 15, 2025 that it would begin direct supply of Premium Motor Spirit (PMS) and diesel to end users on August 15.
The refinery said it would deploy 4,000 Compressed Natural Gas (CNG)-powered tankers nationwide to deliver products directly to large consumers, including marketers, telecom companies, manufacturers, hotels and airlines, bypassing traditional depots and intermediaries.
According to Korie, this shift poses an existential threat to NOGASA members, who serve as intermediaries between refineries and final consumers.
According to him, the move will put many members of the association out of business and many jobs are at stake.
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NOGASA fears that the new model could render many of its members’ trucks, drivers, and staff redundant, with broader implications for the Nigerian economy.
Determined to find a solution, the association has scheduled a general meeting for July 31, 2025 where members will discuss possible actions, including industrial action and negotiations with Dangote Refinery.
NOGASA is at the same time urging industry stakeholders and regulators to intervene, stressing the importance of a balanced distribution framework that supports employment and maintains sector stability.
The association insists that while innovation in logistics is welcome, it should not come at the cost of dismantling established structures and livelihoods.
(Editor: Okechukwu Eze)
