The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has raised an alarm over Dangote Refinery’s plan to distribute petroleum products directly to end users, bypassing the traditional network of suppliers and marketers. The association warns that if the refinery does not reverse its decision, members may be forced to suspend operations nationwide.
Benneth Korie, President of NOGASA, described the development as a threat to thousands of jobs and a potential disruption to the oil and gas value chain in Nigeria. He disclosed that the association will convene a crucial general meeting on July 31 at Chida Hotels, Abuja, to deliberate on the way forward — including a possible shutdown.
“We are holding a general meeting on July 31st to decide whether to down tools and to find a way to ensure that Dangote will supply the product to us, not directly to the end users. There are established chains of distribution and this move threatens that,” Korie stated.
Dangote Refinery had on June 15, 2025, announced its intention to commence direct supply of Premium Motor Spirit (PMS) and diesel to end users beginning August 15, 2025. The refinery also revealed plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers to handle nationwide delivery to marketers, manufacturers, aviation companies, hotels, telecom giants, and other large-scale consumers.
This strategy, according to NOGASA, could sideline intermediaries like them who have long served as the bridge between refineries and consumers. Korie emphasized that the change in supply dynamics will render many trucks, drivers, and logistics personnel redundant — escalating unemployment and destabilizing the sector.
“This new approach, where Dangote supplies directly to major companies like MTN and hotels, is dangerous for our industry,” he warned. “Our members are suppliers — this move cuts us off completely. Jobs are at stake, businesses will collapse, and the ripple effect will impact the entire economy.”
Korie insisted that NOGASA is not against innovation, but called for a collaborative model that sustains the industry’s employment and economic contributions. The association is advocating for Dangote to revert to the traditional model — supplying products to NOGASA members, who will then deliver to end users.
“If this is not addressed, the consequences will be dire — not just for our members, but for the oil and gas ecosystem in Nigeria,” Korie concluded.
The outcome of the July 31 meeting will determine the association’s next steps, which may include a full-scale halt of operations or direct engagement with Dangote Refinery management.
