The Dangote Petroleum Refinery’s bold plan to bypass traditional fuel distribution channels has triggered sharp warnings from oil marketers, who fear the move could destabilize Nigeria’s energy sector, cause product scarcity, and threaten thousands of jobs.
During the Annual General Meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) in Abuja, its President, Bennett Korie, urged the Federal Government to intervene and halt the refinery’s strategy of supplying petrol and diesel directly to large-scale end-users.
According to Korie, such a move could lead to the collapse of existing supply networks and repeat the failures of the Nigerian National Petroleum Company Limited (NNPCL), which faced a similar crisis after attempting direct fuel retailing.
Korie explained that while NOGASA supports the Dangote refinery, it strongly opposes the decision to handle refining, distribution, and retail through a single entity. “We are not against the refinery. What we are saying is — don’t make the same mistake NNPC made. Once they started direct distribution, our refineries began to fail,” he warned.
The Dangote Group has reportedly taken delivery of 4,000 Compressed Natural Gas (CNG) tankers for nationwide product delivery and is scheduled to launch the initiative on August 15. The $20 billion refinery claims the move will cut logistics costs, save the country over N1.7 trillion annually, and benefit over 42 million small and medium businesses.
However, marketers believe this monopoly could eliminate smaller players from the supply chain. “Dangote cannot handle nationwide distribution sustainably,” Korie added. “Thousands of filling stations and logistics chains may shut down, and the nation risks another round of fuel scarcity.”
Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), also voiced concern.
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He drew parallels to the cement industry, warning that the Dangote refinery might soon dictate pricing, distribution, and logistics, effectively monopolizing the downstream oil sector.
“Refining and distributing is not the same,” said Gillis-Harry. “When one company becomes the refiner, the distributor, and the price fixer, you create imbalance and instability. Small retailers are already losing up to N80 per litre due to price hikes.”
The PETROAN president urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Ministry of Petroleum Resources to step in with strong regulation and oversight. He emphasized that independent marketers, like NATO, NOGASA, and PTT, remain capable of effective fuel distribution across the country if supported.
Marketers are now pleading with President Bola Tinubu to step in and guide a dialogue between stakeholders and the Dangote Group to prevent what could become a nationwide crisis if left unchecked.
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