The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) on Monday in Abuja expressed concerns over Dangote Refinery’s recent decision to supply petroleum products directly to end users, bypassing the traditional supply and distribution network.

NOGASA President, Benneth Korie, stated that the move could have far-reaching implications for the downstream sector, warning that thousands of jobs could be threatened, and existing supply chain structures destabilised.

Dangote Refinery had on 15 June 2025 announced its intention to commence direct supply of Premium Motor Spirit (PMS) and diesel to marketers, manufacturers, telecom companies, aviation firms, and other large-scale consumers starting 15 August 2025.

The company disclosed plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers to facilitate nationwide distribution.

However, NOGASA argues that the model sidelines long-established intermediaries who play a key role in bridging supply between refineries and end users.

Korie pointed out that many NOGASA members operate within this middle layer and could become redundant if the new distribution strategy is implemented as planned.

“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 the rest,” Korie said.

“Our members are suppliers of petroleum products. By so doing, a lot of jobs are at stake, and we are kicking against this new approach.”

He explained that the association fears the redundancy of thousands of drivers, truck owners, logistics operators, and administrative staff who depend on the existing supply framework for their livelihoods.

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

NOGASA has scheduled a general meeting on 31 July at Chida Hotels in Abuja to deliberate on a coordinated response.

Among the options being considered are industrial action and formal dialogue with Dangote Refinery to seek a compromise.

Korie emphasised that NOGASA is not opposed to innovation in the industry but is advocating for a distribution structure that includes its members, to preserve employment and maintain balance in the downstream sector.

“We are holding a general meeting on the 31st to decide whether to down tools and to find a way to ensure that Dangote supplies products to our members, who will in turn sell to end users. These are established chains of distribution,” he said.

The association stressed that bypassing intermediaries entirely is “not healthy for the oil and gas industry” and could undermine broader economic stability. It is calling on industry stakeholders and regulators to recognise the importance of maintaining an inclusive supply system.