Oil and Gas Suppliers Protests Dangote’s Plan to Sell Fuel Directly to Consumers

The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has raised concerns over Dangote Refinery’s new strategy to deliver fuel directly to large buyers. eliminating the country’s established network of depots and middlemen.

Dangote’s Direct‑to‑Consumer Move

Dangote Refinery recently announced it will roll out 4,000 CNG‑powered tankers to ship Premium Motor Spirit (PMS) and diesel directly to major end users, including telecom companies, manufacturers, hotels, and aviation firms.

This approach bypasses the traditional system, where independent suppliers purchase from refineries or depots and then sell on to smaller marketers and dealers.

Benneth Korie, NOGASA’s president, says the plan threatens thousands of jobs across Nigeria’s fuel‑distribution industry. “Our members act as the vital link between refineries and final consumers,” Korie explained.

“If Dangote supplies straight to big clients, many of our trucks, drivers, and staff will become redundant, and the ripple effects will hurt local economies.”

In response, NOGASA has called a general meeting for July 31 at Chida Hotels. There, members will debate whether to down tools and how best to engage Dangote’s management. 

The association hopes to persuade the refinery to restore the classic chain of supply—selling first to independent distributors, who would then deliver to end users—so that jobs and small businesses along the route are protected.

Korie stressed that a healthy oil and gas sector relies on a mix of large‑scale production and local distribution networks. “Bypassing independent suppliers destabilises the ecosystem,” he said. “We urge all stakeholders, government, 

Dangote Refinery, and marketers, to recognise the critical role these suppliers play in logistics, pricing stability, and regional economic health.”

As NOGASA prepares its strategy meeting, the wider industry and policymakers will be watching closely. The outcome could set a precedent for how Nigeria balances the efficiency of vertical integration against the livelihoods and small enterprises that underpin its fuel market.