Amid high public expectations ahead of the distribution of petroleum products by the Dangote Refinery, the Nigerian Oil and Gas Suppliers Association (NOGASA) has raised alarm over potential fuel scarcity, warning that the refinery’s move to directly distribute fuel to end users—bypassing licensed marketers—could destabilize the country’s downstream sector.
Speaking at the association’s Annual General Meeting in Abuja, NOGASA President, Mr. Bennett Korie, expressed deep concern over the refinery’s logistics model, which excludes thousands of independent oil marketers and suppliers. According to him, Dangote's plan to deploy over 4,000 compressed natural gas (CNG) trucks for direct distribution poses a serious threat to fuel availability, employment, and the nation’s economic stability.
"If Dangote is allowed to take over the entire downstream supply chain and begin direct distribution to end users, thousands of petroleum marketers will be out of business. This move will not only trigger fuel scarcity but also render our members and their workers jobless," Korie said.
He warned that a repeat of the National Nigerian Petroleum Company Limited’s (NNPCL) failed attempt at direct retailing—where scarcity and inefficiencies increased—may reoccur if Dangote’s approach is not reviewed. The association urged the federal government and regulators like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene before the situation worsens.
Also lending their voice to the warning, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) described Dangote’s strategy as a deliberate attempt to monopolize the fuel supply chain, noting that Nigerians may not fully appreciate the damage until the supply system begins to break down.
"We are not against Dangote Refinery; in fact, we commend the initiative. But bypassing stakeholders and taking full control of both refining and distribution is a dangerous model that must be addressed,” PETROAN stated.
NOGASA and other stakeholders insist that while the entry of Dangote into the oil refining space is welcome, the supply and distribution process must remain inclusive to preserve competition, jobs, and stability within the sector.
The refinery, with a daily capacity of 650,000 barrels, is expected to commence full-scale distribution within weeks, a development eagerly anticipated to ease the pressure on Nigeria’s foreign exchange and end fuel import dependency. However, the lack of stakeholder engagement in the distribution phase has now cast a shadow over what was hailed as a historic breakthrough for the nation’s energy independence.
As the commencement date draws closer, pressure is mounting on government regulators to ensure that the Dangote Refinery operates within a competitive framework and does not stifle the existing supply ecosystem.
Ends.