Suppliers Oppose Dangote’s Plan for Direct Fuel Distribution

Less than a month before the Dangote refinery begins its direct fuel distribution scheme, Nigerian oil suppliers have raised strong objections, warning of potential job losses and disruptions to the country’s supply chain.

Set to commence on August 15, the new model will see Dangote distributing petrol, diesel, and jet fuel directly to end-users such as filling stations, telecom companies, airlines, and manufacturers. The company plans to deploy 4,000 Compressed Natural Gas-powered tankers nationwide, eliminating the role of traditional depots and middlemen in its distribution network.

However, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has voiced serious concerns over the move. According to a statement issued by NOGASA President Benneth Korie, bypassing established intermediaries could jeopardize thousands of jobs across the industry. He noted that NOGASA members, who currently serve as a key link between refineries and consumers, fear being pushed out of the market entirely.

“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 all the rest of them,” Korie said. “By doing so, a lot of jobs are at stake, and we are kicking against this new way of supplying products to end users.”

Korie added that many logistics workers, including truck drivers and depot staff, could be rendered redundant as a result of the streamlined distribution model. He also confirmed that growing unease among suppliers and tanker operators had already been reported, echoing findings from a recent *Sunday PUNCH* investigation.

In response to the situation, NOGASA has scheduled a general meeting for July 31 in Abuja to develop a collective strategy. According to Korie, members will consider potential actions, including a temporary halt in operations and direct engagement with Dangote Group to negotiate a compromise. The association is advocating for a structure where Dangote supplies fuel to NOGASA members, who would then handle last-mile distribution to end users.

“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 us rather than directly to the end users,” Korie said. “These are chains of distribution that need to be preserved.”

The Dangote refinery, which has positioned itself as a game-changer in Nigeria’s energy landscape, is yet to respond publicly to NOGASA’s concerns.