|By Adejumo Adekunle
…Petroleum suppliers fear job losses, plan stakeholders’ meeting July 31
The Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) has strongly opposed the move by Dangote Refinery to begin direct supply of petroleum products, particularly Liquefied Petroleum Gas (LPG), to end users.
NOGASA president, Benneth Korie, voiced the association’s concern in a statement issued Monday, warning that the move could destabilise the existing supply chain and cost many Nigerians their jobs.
Last week, Aliko Dangote, President of the Dangote Group, revealed plans to begin nationwide distribution of LPG. This comes as the 650,000-barrel-per-day Dangote Refinery prepares to kick off direct supply of petroleum products to large-scale users, including telecom giants and hotels, starting August 15, 2025.
Reacting to the development, Korie said the new model would effectively cut out intermediaries like NOGASA members who act as the bridge between refineries and consumers.
“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,” Korie stated.
“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 added.
Korie explained that the shift could make many workers redundant, especially drivers, logistics personnel, and truck operators who currently play critical roles in the distribution process.
“It will remove jobs from a lot of them, and some of our staff will be redundant. Some of our trucks will be redundant,” he said, warning of a ripple effect on the broader Nigerian economy.
To address the looming threat, NOGASA has scheduled a crucial meeting for July 31 at Chida Hotels. According to Korie, the gathering will aim to forge a resolution with Dangote Refinery and push for a partnership model that retains the role of suppliers.
“We are meeting up with Dangote to ensure that there will be a relationship where Dangote should not supply products to end users,” he said.
The association has expressed hope that dialogue will lead to a workable solution that safeguards jobs while allowing market innovation.
