The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has strongly opposed a recent plan by Dangote Refinery to supply petroleum products directly to end users, bypassing the traditional distribution chain.

The President of NOGASA, Benneth Korie, warned 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.

The Dangote Refinery had announced plans to begin direct supply of petroleum products to end users effective Thursday, August 15, 2025.

The refinery said it will 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, in a statement on Monday, Korie noted that Dangote?s decision to supply products directly to large organisations, such as telecommunications giants and hotels, marks a notable shift in the sector.

He said 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.

The association?s president further 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.

He said NOGASA has scheduled a general meeting on Thursday, July 31 at Chida Hotel, 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 advocated 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.

It also called on all stakeholders to recognise the vital role that suppliers play, not only in logistics but also in maintaining a balanced industry ecosystem.

?We are holding a meeting on the 31st of July 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,? Korie added. (Daily Sun, excluding headline)

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