The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), yesterday, 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 June 15, 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 August 15, 2025.
  
The company disclosed plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers to facilitate nationwide distribution. However, NOGASA argued 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.
  
“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.
 
NOGASA has scheduled a general meeting on July 31 at Chida Hotels, in Abuja, to deliberate 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.