NOGASA rejects Dangote refinery’s fuel distribution plan, says thousands of jobs at risk

The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has opposed the recent plan by Dangote Petroleum Refinery to distribute petroleum products directly to end users.

In a statement on Monday, the group said the refinery intends to bypass the traditional distribution chain.

On June 15, the refinery said it will begin the nationwide distribution of diesel and petrol on August 15.

Commenting on the development, Benneth Korie, NOGASA’s president, said the move could significantly disrupt the oil and gas industry.

Korie said bypassing the traditional distribution mechanism is “not healthy for the oil and gas industry” and threatens its stability.

This, the NOGASA president said, could put thousands of jobs at risk and jeopardise the existing business models of suppliers nationwide.

He said Dangote’s decision to supply products directly to large organisations, such as telecommunications giants and hotels, represents a major shift in the sector.

“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.

“Members of NOGASA are suppliers of petroleum products. By so doing, a lot of jobs are at stake and we are kicking against this new way of supplying products to end users.

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

Korie stressed the redundancy of trucks, drivers, and other logistical staff as a direct result of bypassing the existing supply chain.

This, according to the NOGASA president, would have a ripple effect not just on the livelihoods of their members, but also on the Nigerian economy.

He said the association has scheduled a general meeting for July 31 at Chida Hotels, Abuja.

Korie said the agenda of the meeting will focus on crafting a unified strategy to address the issue, including the possibility of downing tools and directly engaging Dangote to seek a resolution.

He said the association is advocating for a distribution model in which Dangote supplies products to NOGASA members, who will then sell to end users, thereby preserving jobs within the supply chain.