July 22, 2025
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has publicly rejected the proposed fuel distribution plan by Dangote Refinery, warning that its implementation could jeopardize thousands of jobs within the downstream oil sector.
Addressing journalists in Abuja, NOGASA President, Benneth Korie, stated that the association is strongly opposed to the refinery’s direct-to-market distribution strategy, which allegedly sidelines established fuel marketers and independent distributors. He warned that the plan, if allowed to proceed, could lead to mass unemployment and paralyze existing supply chains across the country.
According to Korie, the move would not only marginalize licensed petroleum dealers but could also cause significant distortions in the fuel pricing structure, potentially creating monopolistic practices in the industry. He stressed that thousands of workers — including truck drivers, depot staff, and independent marketers — rely on the traditional distribution model for their livelihoods.
NOGASA appealed to the federal government and regulatory bodies to intervene promptly and ensure inclusive participation in the distribution framework of the refinery, Africa’s largest, which began fuel production earlier this year.
The association also reiterated its support for local refining but emphasized the need for fair policies that protect existing industry players while embracing innovation and expansion.
As stakeholders await a response from the Dangote Group and government regulators, tensions remain high in Nigeria’s oil distribution sector over the future role of major refineries in the supply chain.