NOGASA Raises Alarm Over Dangote Refinery’s Direct Fuel Distribution Plan

Less than a month before the commencement of Dangote refinery’s direct fuel distribution scheme, oil suppliers in Nigeria have urged the company to reconsider its decision, citing fears of widespread job losses and industry disruption.

From August 15, 2025, Dangote plans to begin supplying fuel directly to filling stations, telecom companies, the aviation sector, and other bulk fuel consumers, bypassing traditional distribution networks.

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) raised concerns that the move would threaten the livelihoods of thousands in the supply chain. According to NOGASA President Benneth Korie, bypassing intermediaries would render suppliers, tanker drivers, and associated logistics personnel redundant.

“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end users. Members of NOGASA are suppliers of petroleum products. By doing so, a lot of jobs are at stake,” Korie warned.

He revealed that Dangote has already procured 4,000 CNG-powered tankers to distribute petrol, diesel, and jet fuel nationwide. This model would enable the refinery to supply fuel directly to large consumers such as telecom firms, airlines, hotels, and manufacturers—excluding intermediaries like NOGASA members.

“It will remove jobs from a lot of them, and some of our staff will be redundant, and some of our trucks will be redundant,” Korie added.

To address the crisis, NOGASA has scheduled a general meeting for July 31 in Abuja. Key items on the agenda include exploring the option of halting operations and engaging Dangote for a more inclusive distribution structure that allows suppliers to retain their role in the supply chain.

“We are holding a general meeting on July 31 to decide whether to down tools and to find a way to ensure that Dangote will supply the product to them rather than supply to the end users,” he said.

NOGASA is advocating for a framework where Dangote supplies products to association members, who in turn distribute to end users—preserving jobs and preventing economic dislocation within the downstream sector.

As the countdown to Dangote’s direct supply launch continues, tensions remain high, with industry observers watching closely to see if a compromise can be reached.