By Obas Esiedesa, Abuja

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised concerns over the Dangote Refinery’s plan to supply petroleum products directly to filling stations, warning that the move could lead to widespread job losses across the sector.

In a statement issued on Monday, NOGASA President Benneth Korie said bypassing the traditional distribution network would disrupt the oil and gas supply chain and threaten the livelihoods of thousands of workers dependent on the existing model.
Dangote Refinery had in June announced it would commence direct supply of petroleum products to end users starting August 15, 2025.

The refinery disclosed 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 doing so, a lot of 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 on July 31 at Chida Hotels, Abuja. The agenda 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.