
Nigerian Oil Suppliers Challenge Dangote’s Direct Distribution Plan
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has formally protested Dangote Petroleum Refinery’s announced plan to distribute petroleum products directly to end users, warning of significant industry disruption.
NOGASA President Benneth Korie criticized the refinery’s decision to bypass traditional distribution chains, calling the move “not healthy for the oil and gas industry” and warning it threatens sector stability. The refinery announced plans to begin nationwide distribution of diesel and petrol on August 15, targeting large organizations including telecommunications companies and hotels.
“This new trend puts thousands of jobs at stake and jeopardizes existing business models of suppliers nationwide,” Korie stated, highlighting concerns about redundant trucks, drivers, and logistical staff.
NOGASA has scheduled a general meeting for July 31 at Chida Hotels, Abuja, to craft a unified response strategy, including potential work stoppages and direct engagement with Dangote. The association advocates for a distribution model where Dangote supplies products to NOGASA members, who would then serve end users, preserving jobs within the supply chain.
Source: orientalnewsng.com