Dangote direct fuel distribution plan alarms NOGASA, IPMAN, and PETROAN, who fear massive job losses, supply disruption, and industry instability

Dangote’s new direct fuel distribution strategy is facing strong resistance from industry stakeholders. The decision to bypass intermediaries has alarmed groups like the Natural Oil and Gas Suppliers Association of Nigeria, who claim it threatens thousands of jobs.

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NOGASA President Benneth Korie said, “A lot of jobs are at stake, and we are kicking against this new way of supplying products to end users.” He warned that dismantling the current supply chain could destabilise the downstream sector.

The Independent Petroleum Marketers Association of Nigeria has also expressed concern. IPMAN’s Chinedu Ukadike suggested that Dangote should hand over its fleet of 4,000 trucks to independent marketers to ensure equitable fuel distribution across the country.

Stakeholders argue that excluding traditional suppliers from the distribution chain risks creating redundancy across the workforce and logistics systems. According to Korie, “It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant.”

The Petroleum Products Retail Outlets Owners Association of Nigeria added its voice, with President Billy-Gillis Harry describing the scheme as a “Greek gift” that may bring short-term gain but long-term pricing instability.

Despite ongoing discussions, Dangote plans to launch the direct supply system by 15 August. NOGASA has scheduled a meeting for 31 July to form a response strategy.

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As National Association of Road Transport Owners President Yusuf Othman put it, “We are in discussion.” The final shape of the fuel distribution sector may soon depend on the outcome of these talks.