Tension has gripped the downstream oil sector as the Dangote Petroleum Refinery prepares to begin direct distribution of petrol and diesel across the country from August 15, 2025, using 4,000 Compressed Natural Gas (CNG)-powered trucks. This move has drawn sharp criticism from industry stakeholders who warn it could lead to massive job losses and collapse the existing fuel supply chain.
Speaking on behalf of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), its National President, Mr. Benneth Korie, raised the alarm over what he described as a serious threat to thousands of livelihoods in the petroleum distribution chain.
“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 said.
Mr. Korie noted that the new system would sideline NOGASA members, many of whom have invested heavily in trucks and manpower for nationwide product distribution.
“It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,” he lamented.
The association warned that the refinery’s decision to bypass depots and existing distribution structures could create a dangerous monopoly and leave many stakeholders in financial distress.
He emphasized that if the current structure is disrupted without proper regulatory checks, the downstream market could be dominated by a single player, which would be detrimental to investment and employment in the sector.
NOGASA urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to urgently review the implications of Dangote’s direct delivery model on small-scale operators and enforce mechanisms that protect existing investors.
Mr. Korie stressed that while Dangote’s refinery remains a national asset, it must operate within a fair system that ensures inclusive participation by all players in the petroleum supply value chain.