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…Warns of impending job losses
The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has raised objections to the recent plan by Dangote Refinery to supply petroleum products directly to end users, bypassing the existing distribution chain.
Dangote Refinery, had disclosed plans to deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers for nationwide distribution of Premium Motor Spirit (PMS) and diesel directly to marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.
This move, according to Benneth Korie, NOGASA’s president, could significantly disrupt the oil and gas industry, putting thousands of jobs at risk and jeopardising the existing business models of suppliers nationwide.
Korie in a statement issued to journalists on Monday, decried that the plan could render the roles of the members of the association, who serve as intermediaries between refineries and final consumers obsolete.
“This is the new trend in the oil and gas industry, where Dangote is now supplying products directly to end users, especially MTN, companies, hotels, and all the rest of them. Members of NOGASA are suppliers of petroleum products. By so doing, a lot of jobs are at stake and we are kicking against this new way of supplying products to end users,” he said.
Read also: Dangote Refinery halts discounted fuel scheme over marketer diversion scandal
He noted that this could lead to redundancy of trucks, drivers, and other logistical staff adding that this would have a ripple effect not just on the livelihoods of the members, but also on the Nigerian economy.
“It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,” Korie warned.
He however disclosed that the association has scheduled a general meeting to develope a unified strategy to address the issue, including the possibility of downing tools and direct engagement with Dangote to seek a resolution.
According to Korie, the association is seeking to advocate for a distribution structure where Dangote supplies products to NOGASA members, who will then sell to the end users, preserving jobs within the supply chain.
“We are holding a general meeting on 31st, to decide whether to down tools and to find a way to ensure that Dangote will supply the product to them rather than supply to the end users. And we will in turn supply to the end users. These are chains of distribution.
“NOGASA insists that bypassing the traditional distribution mechanism is not healthy for the oil and gas industry and poses risks to its stability. The association is calling on all stakeholders to recognize the vital role that suppliers play—not only in logistics but also in maintaining a balanced industry ecosystem.
“We are holding a meeting on 31st of July at Chida Hotels to have a resolution and meet up with Dangote to ensure that they will have a relationship where Dangote should not supply products to end users. So that is the story. NOGASA kicks against Dangote for the direct supply to end users,” Korie stated.
