As the Dangote Refinery prepares to launch its direct fuel distribution model on August 15, oil suppliers in Nigeria are raising strong objections, urging the company to reconsider the move.

Under the new plan, Dangote will begin distributing fuel directly to filling stations, telecom companies, aviation operators, and other major consumers, effectively bypassing traditional distribution channels.

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has expressed deep concerns over the implications of this approach. According to NOGASA President Benneth Korie, the decision could disrupt the established supply chain and lead to significant job losses across the sector.

Korie explained that the refinery’s new model — which includes the deployment of 4,000 Compressed Natural Gas-powered tankers to deliver petrol, diesel, and jet fuel across the country — would sideline intermediaries such as NOGASA members, who play a crucial role in the current distribution process.

“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end users like telecom firms, hotels, and other large organizations. Our members are suppliers of petroleum products, and this approach threatens thousands of jobs. We strongly oppose it,” he stated.

He warned that bypassing traditional suppliers could render many trucks, drivers, and logistics staff redundant, compounding unemployment in the sector.

“A lot of our staff may lose their jobs. Trucks and other logistics equipment could be left idle,” Korie said, adding that the association has scheduled a meeting for July 31 in Abuja to deliberate on a collective response. This may include the possibility of halting operations or engaging Dangote for dialogue.

NOGASA is advocating for a revised distribution strategy in which Dangote would supply fuel to the association’s members, who would then deliver to the final consumers — preserving the current supply chain and protecting jobs.

“We are calling for a system where Dangote supplies products to us, and we in turn serve the end users. That way, the distribution chain remains intact,” Korie added.