The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has strongly opposed the Dangote Refinery’s planned direct fuel distribution scheme, warning that the move could trigger widespread job losses and disrupt the existing petroleum supply chain.
The Dangote Refinery, Africa’s largest single-train refinery, announced that from August 15, it would commence direct delivery of petrol, diesel, and aviation fuel to filling stations, telecom operators, aviation firms, hotels, and other bulk consumers. The plan involves the deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers for nationwide distribution, eliminating the need for traditional depots and middlemen.
In a statement on Wednesday, NOGASA President, Benneth Korie, warned that the new distribution model could push thousands of workers, including tanker drivers, logistics personnel, and middle-level suppliers, into redundancy.
“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end-users, especially telecom firms, hotels, and other bulk consumers. Members of NOGASA are suppliers of petroleum products. By bypassing us, a lot of jobs are at stake, and we are kicking against this new way of supplying products to end-users,” Korie stated.
According to him, many trucks owned by NOGASA members will become idle, while employees who depend on depot-to-station distribution will face retrenchment.
“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 lamented.
Korie revealed that NOGASA has scheduled a general meeting for July 31 in Abuja to strategize on how to address the issue. Among the options being considered are engagement with Dangote Refinery to reconsider its distribution model or a potential industrial action (downing tools) to protest the move.
“We are holding a general meeting to decide whether to down tools and to find a way to ensure that Dangote will supply products to us, and we will, in turn, supply to the end-users. These are chains of distribution that sustain thousands of jobs,” he added.
The association insists that Dangote should maintain a wholesale-to-middlemen model, where suppliers act as intermediaries between the refinery and final consumers, to preserve existing jobs in the sector.
Reports suggest growing unease among fuel depot owners and tanker drivers over the refinery’s decision, with fears that other refineries could adopt a similar direct-to-consumer strategy if Dangote’s plan succeeds.
While Dangote Refinery has not issued a formal response to NOGASA’s concerns, industry analysts argue that its decision is driven by the need to reduce fuel distribution costs, ensure product availability, and curb adulteration often linked to multiple handling of petroleum products.
Experts believe that the direct distribution scheme could lower fuel prices for consumers by removing multiple mark-ups associated with depot operations and middlemen. It may also improve fuel quality and timely delivery to end-users.
However, labour unions warn that any large-scale job losses in the downstream sector could spark industrial unrest, especially if NOGASA proceeds with its threat to suspend fuel supply operations.
The development comes at a time when the Dangote Refinery, which began commercial operations earlier in 2025, is positioning itself as a major supplier of refined petroleum products across West Africa, aiming to end Nigeria’s reliance on imported fuel.