The Dangote Refinery says it has received 4,000 new Compressed Natural Gas (CNG)-powered trucks for its fuel distribution initiative, scheduled to be launch on August 15.
The landmark initiative which is intended to provide more efficient transportation across Nigeria and beyond, has been applauded by some industry experts to reduce production costs, ease inflationary pressures, and stimulate economic growth.
With the investment of N720 billion, the initiative is expected to save Nigerians over N1.7 trillion annually, and lift 42 Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.
The refinery said the strategic programme is part of its broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development.
“It affirms our dedication to improving the availability and affordability of fuel, in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians.
“Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support.
“Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery,” it said.
In addition, the refinery said, it would offer a credit facility to those purchasing a minimum of 500,000 litres—allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee.
However, the Natural Oil & Gas Suppliers Association of Nigeria (NOGASA) recently kicked against the plan by the Dangote Refinery to supply petroleum products directly to end users, bypassing the traditional distribution chain.
NOGASA’s president, Benneth Korie, voiced concerns that this move could significantly disrupt the oil and gas industry, putting thousands of jobs at risk and jeopardising the existing business models of suppliers nationwide.
“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. 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,” Korie stated.
Korie elaborated on the potential consequences, highlighting that many NOGASA members and their employees could lose their jobs. The redundancy of trucks, drivers, and other logistical staff looms as a direct result of the bypassed supply chain.
This, according to the association, would have a ripple effect not just on the livelihoods of their members, but also on the Nigerian economy.
“It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,” Korie warned.
He said NOGASA has scheduled a general meeting on July 31 at Chida Hotels, Abuja. The agenda will focus on developing a unified strategy to address the issue, including the possibility of downing tools and direct engagement with Dangote to seek a resolution.
The association is seeking to advocate for a distribution structure where Dangote supplies products to NOGASA members, who will then sell to the end users, preserving jobs within the supply chain.
“We are holding a general meeting on 31st, to decide whether to down tools and to find a way to ensure that Dangote will supply the product to them rather than supply to the end users. And we will in turn supply to the end users. These are chains of distribution,” Korie explained.
NOGASA insists that bypassing the traditional distribution mechanism is “not healthy for the oil and gas industry” and poses risks to its stability. The association is calling on all stakeholders to recognize the vital role that suppliers play—not only in logistics but also in maintaining a balanced industry ecosystem.
“We are holding a meeting on 31st of July at Chida Hotels to have a resolution and meet up with Dangote to ensure that they will have a relationship where Dangote should not supply products to end users. So that is the story. NOGASA kicks against Dangote for the direct supply to end users,” Korie stated.
