The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has voiced serious concerns over plans by Dangote Refinery to begin direct supply of petroleum products to end-users, bypassing established distributors.
NOGASA President, Benneth Korie, warned that the move could disrupt Nigeria’s oil and gas sector, threaten thousands of jobs, and undermine the existing business models of suppliers nationwide.
Dangote Refinery recently announced it will, starting August 15, 2025, distribute Premium Motor Spirit (PMS) and diesel directly to end-users using 4,000 new Compressed Natural Gas (CNG)-powered tankers.
The direct supply will target marketers, petrol stations, manufacturers, telecom firms, aviation companies, and other large consumers—cutting out traditional depots and intermediaries.
“This marks a significant shift in the sector,” Korie said.
“Dangote is now supplying products directly to MTN, companies, hotels, and others. NOGASA members, who are the established suppliers, stand to lose their roles in the supply chain.”
Korie emphasized that many suppliers, along with their drivers, truck owners, and logistical workers, could soon face unemployment as the traditional distribution chain collapses. He cautioned that this could trigger broader economic consequences.
In response, NOGASA has scheduled a general meeting to devise a unified strategy, including possible industrial action and direct engagement with Dangote Refinery.
The association is calling for Dangote to adopt a distribution model that integrates NOGASA members as intermediaries, thereby safeguarding jobs and sustaining the existing supply chain.
Korie urged all stakeholders to recognize the crucial role of suppliers in maintaining industry stability and protecting livelihoods across the sector.
(FRCN)
