…as association seek FG’s intervention to halt Dangote’s distribution plan
The Nigerian Oil and Gas Suppliers Association (NOGASA) has called on the Dangote Refinery to halt its plan to commence the distribution of petrol products to end users, stating that it is unsustainable for the company.
Dangote Refinery, had disclosed plans to deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers for nationwide distribution of Premium Motor Spirit (PMS) and diesel directly to marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.
However, speaking at a stakeholders’ meeting in Abuja on Thursday, Benneth Korie, president of the association warned that handling refining, distribution, and retail through filling stations as a single entity is unsustainable, citing the failed attempt by the Nigerian National Petroleum Company Limited at direct distribution.
Korie stressed that while the association fully supports the operations of the Dangote Refinery, the decision to bypass traditional distributors poses a serious threat to existing supply structures and could replicate the challenges that undermined the NNPCL in the past.
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“You can’t do it alone. Concentrate on refining and allow marketers to distribute. If you try to handle it all, the system will collapse.
“We are not against the refinery. If there is anyone who supported the Dangote Refinery more than any other group, it is NOGASA. But we must advise properly. We don’t want what happened to NNPC to happen again,” Korie said.
Korie appealed to President Bola Ahmed Tinubu to intervene in the ongoing shift by Dangote Refinery, warning that such a move could destabilize the downstream sector and lead to widespread job losses.
Korie noted the economic impact of such centralization, stating that thousands of Nigerians working across over 50,000 filling stations and logistics chains could be displaced if independent marketers are sidelined. He called on the government to facilitate dialogue between Dangote Group and key industry stakeholders, including major and independent Petroleum marketers among others.
In his remarks, Billy Gillis‑Harry, president, Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed concerns about Dangote Refinery’s move toward forward integration, warning that it could gradually lead to a monopoly disguised as market efficiency and trigger extensive job losses across the downstream sector.
According to him, a refinery with a production capacity of 650,000 barrels per day one of the largest in sub-Saharan Africa should be positioning itself as a global competitor in refining and export, rather than venturing into domestic product distribution. The association described the move as a direct threat to fair competition and a potential danger to Nigerian consumers.
They warned that Dangote’s strategy could involve price undercutting temporarily reducing prices to capture a large share of the market forcing independent filling stations to shut down under unsustainable market conditions.
PETROAN noted that it could lead to the collapse of thousands of fuel outlets nationwide and result in widespread unemployment.
Further compounding their concerns is the planned deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers by the refinery. While this innovation could lower transportation costs, PETROAN argues it would likely displace many existing truck drivers and owners who currently rely on conventional petroleum-based logistics for their livelihood.
The president reiterated that the ultimate goal of such a strategy seems to be the full control of the downstream petroleum sector, enabling Dangote to dictate prices, suppress competition, and exploit consumers through reduced market options.
“The association is therefore calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Minister of State for Petroleum Resources to urgently implement pricing regulations, reinforce market oversight, ensure crude oil is accessible to local refineries, and take deliberate steps to protect existing jobs in the sector,” Gillis‑Harry noted.
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Meanwhile, Ikeagwuonu Ugochinyere, Chairman of the House Committee on Petroleum Resources (Downstream), who also spoke at the event, assured stakeholders that the National Assembly is monitoring the development closely.
“This is a big change, and I want to assure you that we are carefully looking into the situation. Our goal is to create a win-win scenario, aligned with the Petroleum Industry Act (PIA),” Ugochinyere said.
He affirmed the distribution challenges in the downstream sector ranging from adulteration to supply bottlenecks and stressed on the need for both government policy and private-sector collaboration to address these issues sustainably.
“The PIA provides a framework for transparency and efficiency in product distribution. But legislation alone is not enough. We need a collaborative approach,” he added.
