Oil marketers under the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) are urging the Dangote Refinery to collaborate with existing downstream players on a unified fuel distribution framework. Speaking at NOGASA’s Annual General Meeting in Abuja, National President Benneth Korie emphasized that refining and distribution are separate specialties and warned that Dangote’s direct-to-market supply strategy could destabilize the sector. He proposed a model where Dangote focuses on refining and sells only in bulk to marketers, who would then handle the nationwide supply to over 50,000 filling stations.
Korie cautioned that bypassing marketers could lead to widespread job losses, especially in volatile regions where community relationships are crucial. He reminded stakeholders that NOGASA had supported Dangote Refinery from inception and said the current proposal aims for a win-win outcome that benefits producers, marketers, and consumers. He called for an emergency meeting of stakeholders—including IPMAN, PTD, and NUPENG—to agree on a sustainable supply structure.
Echoing similar concerns, PETROAN President Billy Gillis-Harry accused the refinery of pursuing a “forward integration” strategy that could monopolize the sector, crush competition, and repeat the cement industry’s pricing crisis. He alleged that Dangote was already undercutting prices to push smaller marketers out of business and warned that allowing one company to control refining, logistics, and retail could hurt the entire economy. Gillis-Harry called on the government to enforce separation of roles under the Petroleum Industry Act (PIA) and protect independent marketers.
Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, represented by Ahmed Saba, acknowledged ongoing distribution challenges and pledged legislative support for structural reforms. He stressed the importance of aligning industry efforts with the PIA, which outlines a transparent, efficient fuel supply system. Abbas highlighted the role of technology, infrastructure investment, and public-private collaboration in improving distribution and ensuring Nigeria’s energy security. He called for sustained dialogue to remove regulatory bottlenecks and promote competition in the downstream sector.
Source: The sun