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Warn of dire consequences of direct sales
From Adanna Nnamani, Abuja
Oil marketers, under the umbrella of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), have called on President Bola Tinubu to intervene in the distribution framework of the Dangote Refinery to avert what they described as possible dire economic and supply consequences.
Speaking at the association’s Annual General Meeting in Abuja on Thursday, July 31, 2025, NOGASA National President, Benneth Korie, urged the refinery to work with existing downstream operators rather than bypass them through direct distribution.
He warned that failing to adopt a collaborative approach could destabilise the market, threaten jobs, and disrupt the nation’s fuel supply chain.
Korie said the association is proposing a model where the refinery focuses strictly on refining and bulk sales to depot owners and marketers, while distribution to over 50,000 filling stations nationwide remains in the hands of established operators.
“Refining and distribution are two different specialisations. The best approach is for Dangote to refine, sell to marketers, and let us handle distribution. This way, the refinery stays focused on production while marketers maintain nationwide supply,” Korie said.
He warned that bypassing marketers through direct supply could lead to massive job losses in the downstream sector, disrupt existing community relationships in volatile areas, and create bottlenecks that may trigger scarcity.
Korie recalled that NOGASA had strongly supported the Dangote Refinery project in its formative years, even lobbying the Federal Government for intervention to ensure its completion.
“No one has supported the Dangote Refinery more than NOGASA. But we have to be honest, direct distribution will create more problems than it solves. We are proposing a win-win arrangement where all stakeholders benefit,” he added.
The NOGASA president urged the refinery management to convene an urgent stakeholders’ meeting involving the Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Tanker Drivers (PTD), National Union of Petroleum and Natural Gas Workers (NUPENG), and other industry players to agree on a sustainable distribution model.
Also speaking, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that Dangote’s plan to refine, store, transport, distribute, and sell directly to the public amounts to a “forward integration strategy” that could crush competition and destabilise the downstream petroleum sector.
Gillis-Harry likened the situation to the cement industry, where dominant producers now control both production and distribution, leading to steep price hikes from about ₦115 per bag years ago to over ₦10,000 today.
He alleged that Dangote was already selling fuel at below-cost prices to capture market share, a move he said could drive independent marketers out of business.
“When one company wants to refine, store, handle logistics, distribute, and fix prices, it becomes both a businessman and a regulator. That is dangerous for competition and for the economy.
“This is not cement. This is PMS and AGO that run over 95% of Nigeria’s energy needs. If one company controls it all, even the hairdresser will not work again,” he warned.
The PETROAN president urged the Federal Government to enforce clear role separation in the downstream petroleum sector as provided in the Petroleum Industry Act (PIA) and to ensure regulators have the capacity to monitor and prevent anti-competitive practices.
He also called for the reservation of at least one million barrels of crude oil daily for domestic refining, saying this would ensure local refineries, including smaller, regional ones, have adequate feedstock to operate efficiently.
Gillis-Harry also suggested continuous stakeholder consultations involving the refinery, marketers, transporters, labour unions, and regulators to design a distribution model that supports competition, prevents job losses, and guarantees nationwide fuel availability.
In his remarks, Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, commended the association’s efforts to keep the industry stable despite challenges and pledged legislative support to address structural and regulatory bottlenecks.
Abbas, who was represented by Ahmed Saba, member representing Edu/Moro/Patigi Federal Constituency, noted that while significant strides have been made in the downstream sector, inefficiencies in distribution, fuel adulteration, supply bottlenecks, and logistical constraints still persist.
The lawmaker assured stakeholders that the legislature is closely monitoring developments in the sector, particularly the entry of the Dangote Refinery into downstream distribution, and its implications for existing operators.
According to him, the National Assembly’s objective is to ensure a win-win situation for all players in line with the provisions of the Petroleum Industry Act.
He said the Act provides a comprehensive framework for improving distribution systems, enhancing transparency, and ensuring product quality across the value chain.
Abbas added that reforms are ongoing to leverage technology for better product tracking, streamline regulatory processes, and invest in infrastructure that will strengthen the supply chain. He emphasised that government efforts alone are not enough and called for robust collaboration and shared responsibility between government and the private sector to ensure sustainable growth.
He urged stakeholders to remain engaged in open dialogue and to work together to dismantle existing barriers, promote competition, and deliver a more reliable and efficient petroleum distribution system for all Nigerians.
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