The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has raised strong objections to the recent plan by Dangote Refinery to supply petroleum products directly to end users, bypassing the traditional distribution chain.
NOGASA’s president, Benneth Korie, voiced concerns that this move could significantly 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 had announced plans to begin direct supply of petroleum products to end users effective August 15, 2025. The refinery disclosed this on June 15, 2025, revealing that 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, manufacturers, telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.
But according to Korie, Dangote’s decision to supply products directly to large organizations, such as telecommunications giants and hotels, marks 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, many jobs are at stake and we are kicking against this new way of supplying products to end users,” Korie stated.
Korie elaborated on the potential consequences, highlighting that many NOGASA members and their employees could lose their jobs.
The redundancy of trucks, drivers, and other logistical staff looms as a direct result of the bypassed supply chain.
This, according to the association, would have a ripple effect not just on the livelihoods of their members but also on the Nigerian economy.
“It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,” Korie warned.
He said NOGASA has scheduled a general meeting that will 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.
“We are holding a general meeting on 31st, to decide whether to down tools and to find a way to ensure that Dangote will supply the product to them rather than supply to the end users. And we will in turn supply to the end users. These are chains of distribution,” Korie explained.
NOGASA insists that 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 recognize the vital role that suppliers play, not only in logistics but also in maintaining a balanced industry ecosystem.
“We are holding a meeting to have a resolution and meet up with Dangote to ensure that they will have a relationship where Dangote should not supply products to end users.”
