By Ono Yima
Tension is brewing in Nigeria’s downstream oil sector as the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged the Federal Government to intervene in Dangote Refinery’s decision to supply petroleum products directly to end users, bypassing existing marketers and distributors.
At its Annual General Meeting in Abuja on Thursday, NOGASA President, Benneth Korie, warned that the move could destabilise the oil and gas distribution network, threaten thousands of jobs, and disrupt established business models nationwide.
Korie appealed to President Bola Tinubu to step in, urging Dangote Refinery to focus solely on refining and selling to marketers rather than entering the retail distribution chain.
“The Dangote Refinery is doing well by refining products. We urge Dangote to concentrate on the refinery and remove its hand from this direct distribution,” Korie said. “We are capable of distributing products. All you need to do is to blend enough products and sell to depot owners and other countries, and then we buy and distribute to end users nationwide to sustain the system and avoid scarcity.”
His remarks come after Dangote Refinery announced plans to begin direct supply of petroleum products from August 15, backed by the purchase of 4,000 distribution trucks for nationwide delivery.
Drawing parallels with the Nigerian National Petroleum Company Limited (NNPC Ltd.), Korie recalled how the state oil company’s refineries faltered after it began focusing on retail distribution through its own outlets, taking on multiple roles including blending, crude sales, and operating filling stations.
The association called for constructive engagement between Dangote Refinery and existing stakeholders to avert a repeat of past market disruptions.
Chairman of the House Committee on Petroleum Resources (Downstream), Mr. Ugochinyere Ikenga, represented by Mr. Saba Ahmed, acknowledged the distribution inefficiencies, adulteration issues, supply bottlenecks, and logistical challenges plaguing the sector. He assured marketers that the National Assembly is monitoring the situation closely in line with the Petroleum Industry Act (PIA).
Dr. Billy Gillis-Harry, National President of the Petroleum Product Retail Outlets Association of Nigeria (PETROAN), warned that Dangote’s forward integration into distribution could trigger widespread job losses and business closures.
“With a production capacity of 650,000 barrels per day, now up to 700,000 barrels, Dangote should be competing globally, not operating as a distributor in the downstream,” he argued.
In a show of support, Chief of Defence Staff, Gen. Christopher Musa, represented by Rear Admiral Jonathan Mamman, urged marketers to stay committed to efficient petroleum distribution while also expanding Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) infrastructure, particularly in remote areas.
Mamman noted that Nigeria’s maritime security had improved significantly, with the International Maritime Bureau removing the country from its piracy red list, thanks to sustained naval patrols. He encouraged collaboration to safeguard oil and gas infrastructure inland and offshore.
“It’s gladdening to say that the International Maritime Bureau in Malaysia and the United Kingdom have delisted Nigeria from one of the countries, red-flagged countries, of piracy and attack on her maritime sectors. We have not been having so much security issues”