By Olatunbosun Obafemi
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised concerns over the Dangote Refinery’s plan to begin direct distribution of petroleum products, warning that the move could create a dangerous monopoly in the downstream sector and threaten thousands of businesses.
At a stakeholders’ meeting held in Abuja, NOGASA’s National President, Benneth Korie, urged President Bola Tinubu to intervene, cautioning that the refinery’s initiative, while innovative, risks pushing out middlemen and destabilizing the distribution chain.
Korie explained that while NOGASA supports the Dangote Refinery’s operations, the group is alarmed by its decision to bypass traditional suppliers by deploying 4,000 Compressed Natural Gas (CNG) trucks for nationwide distribution, starting August 15. He lamented that the association, despite its historical support for the refinery, has never been consulted on the planned changes.
“We are not against Dangote. But we must be carried along. If we supported the refinery during its trying times, it’s only fair we are considered now,” Korie said.
The Dangote Group had previously announced that it invested over ₦720 billion in the direct distribution system and claimed it would absorb over ₦1.07 trillion in annual logistics costs—savings it says will be passed to consumers and businesses. The refinery targets Nigeria’s daily consumption of 65 million litres of refined products, aiming to reduce pump prices and inflation through direct delivery to filling stations and industrial users.
But Korie warned that such vertical integration could decimate small and medium-sized marketers who rely on their role in the supply chain. “Our members are scared. This looks like a monopoly that will throw thousands of people out of work,” he said, urging that existing players be given a fair share in the value chain.
Dr. Billy Gillis-Harry, President of PETROAN, echoed the concerns, citing the cement industry as a cautionary tale where market dominance didn’t translate to lower prices. Lawmakers, too, are now monitoring the development closely, with the House Committee on Petroleum Resources pledging oversight to ensure fair competition.
