The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has kicked against decision by Dangote Refinery to supply petroleum products directly to end users.
NOGASA’s president, Benneth Korie, expressed concerns that the move could significantly disrupt the oil and gas industry, putting thousands of jobs at risk and jeopardising the existing business models of suppliers nationwide.
Dangote Refinery recently 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 petrol and diesel directly to marketers, dealers, manufacturers, telecom firms, aviation companies, and other large consumers, thereby bypassing traditional depots and intermediaries.
However, 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 adversely affect their roles.
He said: “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”.
He noted 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 noted.
He said NOGASA has scheduled a general meeting on July 31 at Chida Hotels, Abuja adding that the agenda will focus on developing a unified strategy to address the issue, including the possibility of strike and direct engagement with Dangote to seek a resolution.
He said 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 products to them rather than supply to the end users. And we will in turn supply to the end users. These are chains of distribution.
“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 on 31st of July at Chida Hotels 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. So that is the story. NOGASA kicks against Dangote for the direct supply to end users,” he stated.
