Dare Babalola
The Nigerian oil and gas industry is abuzz with controversy as three major organisations – the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Nigerian Association of Road Transport Owners (NARTO), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) – resisted Dangote Refinery’s plan to distribute petroleum products directly to end-users.
The three organisations called on the Federal Government to intervene and prevent monopolies in the oil industry stating that Dangote’s direct distribution plan would affect modular refineries, import-dependent marketers, and truckers, potentially leading to a collapse of existing supply networks.
The associations threatened to withdraw their services on Tuesday should Dangote Refinery fail to rescind its decision to distribute products directly to the end-users.
The threat to withdraw their services nationwide could lead to a severe petrol scarcity.
Speaking in a joint press conference in Abuja, the NOGASA national president, Benneth Korie said the stakeholders are against the direct supply from Dangote in order to avert total scarcity should the refinery breakdown after plunging the market into a monopoly.
Korie said, “Given the urgency of this matter, we find ourselves with no other choice but to consider withdrawing our services nationwide in solidarity with NUPENG and other stakeholders if this situation remains unresolved.
“It is hereby directed that all oil and gas suppliers to all construction companies, industries, hotels and telecommunication sites nationwide should withdraw the services with effect from tomorrow 9th September 2025 pending when the matter is resolved.”
Korie emphasised, “It is hereby directed that all oil and gas suppliers to all construction companies, industries, hotels, and telecommunication sites nationwide should withdraw their services with effect from tomorrow, 9th September 2025, pending when the matter is resolved.”
NOGASA wants Dangote to focus on refining and selling products to marketers, who can then sell to end-users. Korie stated, “The depot owners, they are almost at 80% ready now to start their own refinery. Go and find out from the MEMAN and DAPPMAN. They will tell you, they’ve started doing the business.”
NARTO, which has over 30,000 trucks operating across the country, rejected Dangote’s plan, citing potential job losses and negative economic impact.
Alhaji Yusuf Othman, NARTO’s President, stated, “While we recognize and appreciate the injection of new trucks and other investments into the petroleum distribution value chain, we must state categorically that NARTO strongly and unequivocally rejects any plan for free distribution of petroleum products.
“Such an approach is not only unsustainable but is also a deliberate attempt to undermine and eliminate the thousands of independent transporters who form the backbone of Nigeria’s petroleum distribution network.
“Any attempt to eliminate the established distribution structure will lead to loss of investment – Truck owners whose spread cut across the country and were financed by banks, both foreign and domestic.”
Furthermore, Othman declared, “NARTO wishes to notify all stakeholders and the general public of its firm position in support of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in the ongoing struggle against monopolistic and anti-competition practices being advanced by the Dangote Group.”
On his part, PETROAN’s President, Billy Hary, warned that Dangote’s plan could lead to job losses and business shutdowns.
“We are protecting the industry from threats to energy security and the jobs of 30,000 tanker drivers.
“We will not stand idly by while Dangote Refinery’s plan threatens the livelihoods of thousands of Nigerians,” he stated.
