Dangote Refinery distribution strategy could collapse Nigeria’s fuel supply network, warns NOGASA. Marketers urge FG to regulate and avoid monopoly risk

Dangote Refinery distribution strategy has sparked alarm among Nigeria’s major petroleum product suppliers, with stakeholders warning that the move could destabilize the fuel distribution network nationwide.

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Speaking at the Annual General Meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) on Thursday, National President Mr. Bennett Korie described Dangote’s plan to directly distribute refined products to end-users as unsustainable and potentially destructive to the existing supply chain.

“If one player dominates and others shut down, any future disruption at Dangote Refinery could paralyze the entire system,” Korie warned.

Drawing a comparison with the Nigerian National Petroleum Company Limited (NNPCL), he noted how its retail venture contributed to the decline of its own refineries.

Describing the move as “greedy,” Korie said: “You can’t carry an elephant on your head and still dig for ants — that’s greed.”

He urged the federal government to intervene and promote inclusivity by allocating at least one million barrels of crude to local refineries.

Korie noted that dialogue with the Dangote Group had made progress, with 80% of discussions reportedly concluded.

Billy Harry, President of the Petroleum Products Retail Outlets Owners of Nigeria (PETROAN), echoed similar concerns.

He accused Dangote of plotting to monopolize the downstream sector, drawing parallels with India’s telecom market, where one dominant player pushed out competitors.

“Dangote should focus on exports. Nigeria’s domestic market needs diversity, not dominance,” Harry said.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) also revealed ongoing discussions with the refinery to ensure fair distribution.

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Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) emphasized that the Petroleum Industry Act (PIA) was designed to support both refining and distribution, warning that energy insecurity could cripple the economy.