Fuel Suppliers Raise Alarm: NOGASA Urges Tinubu to Stop Dangote’s Direct Distribution Plan

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised serious concerns over the Dangote Refinery’s plan to directly distribute fuel across Nigeria, warning that such a move could harm the country’s downstream oil sector and result in widespread job losses.

Speaking during the association’s Annual General Meeting in Abuja on Thursday, NOGASA National President, Bennett Okorie, appealed to President Bola Tinubu to intervene and advise Aliko Dangote, the billionaire owner of the $20 billion refinery, to abandon the direct distribution model and stick to industry practices.

Okorie argued that Dangote’s current approach could mirror the failures of Nigeria’s government-owned refineries managed by the NNPCL, where a similar strategy led to operational decline.

“If Dangote goes ahead with this plan by August 15, 2025, the refinery might suffer the same fate as the refineries in Port Harcourt, Kaduna, and Warri,” he said. “We’re not against the refinery itself—we welcome it—but we believe bypassing distributors will disrupt the market and destroy livelihoods.”

He explained that historically, NNPC functioned well when it only refined and handed over distribution to its subsidiaries. Trouble began, he claimed, when NNPC decided to also distribute directly via its own retail stations—leading to inefficiencies that affected refinery operations and supply chains.

“Our fear is history repeating itself,” Okorie warned. “We don’t want the Dangote Refinery, which holds so much promise, to be undermined by wrong advice and unbalanced competition.”

NOGASA’s concern comes after the Dangote Group announced it had acquired 4,000 compressed natural gas-powered tankers to roll out fuel supply directly to customers nationwide, including filling stations—cutting out traditional suppliers.

In response, Dangote Refinery has dismissed NOGASA’s fears, maintaining that the plan is designed to increase efficiency, reduce costs, and ensure nationwide fuel availability.

Despite the pushback, industry watchers say the issue reflects a broader debate over the structure of Nigeria’s petroleum sector—balancing open competition, job creation, and supply chain integrity.

As the refinery gears up for full operations and fuel supply across the country, all eyes are now on the Presidency to see whether President Tinubu will step in—or let market forces play out.