SEO Riders:
– NOGASA warns Dangote’s direct supply model risks destabilizing Nigeria’s fuel distribution network.
– Marketers cite threats to over 50,000 fuel outlets and thousands of downstream jobs.
– Calls for compliance with Petroleum Industry Act and sustainable engagement with independent marketers.
At its recent Annual General Meeting in Abuja, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) urged President Bola Tinubu to step in and prevent Dangote Refinery from beginning direct distribution of petroleum products to end-users—set to start on August 15. NOGASA President Benneth Korie cautioned that bypassing traditional marketers could lead to fuel scarcity, collapse of existing supply chains, and irreparable harm if Dangote faces operational disruptions. He warned that if Dangote directly supplies stations and industrial users, independent marketers may be driven out of business, echoing past failures seen when NNPC ventured into retail via filling stations.
Echoing the concern, PETROAN President Billy Gillis-Harry emphasized that Dangote’s deployment of 4,000 CNG-powered tankers for nationwide distribution could displace thousands of logistics and retail workers Distributors warned that the downstream system could collapse under monopolistic vertical integration unless the refinery restricts its mandate to refining and supplying independent marketers.
Representatives from the House Committee on Petroleum Resources (Downstream) confirmed they are reviewing the strategy’s alignment with the Petroleum Industry Act (PIA). They underscored the importance of industry-wide consultation and policy-guided implementation to ensure a balanced, competitive energy sector that protects jobs and consumer access.
