NOGASA Urges Tinubu To Intervene In Dangote’s Planned Petrol Distribution

As the date set for the Dangote Refinery to kickstart the inter-direct distribution of Premium Motor Spirit (PMS) popularly called petrol draws near, the Natural Oil and Gas Suppliers Association (NOGASA), has called on President Bola Tinubu to intervene so that the refinery plays by the rules.

NOGASA National President, Benneth Korie, who made the call on Thursday during the association’s meeting, held at Chida Hotel, Abuja, noted that NOSAGA would like to work with the Refinery to ensure that the business survive for the mutual benefit of all involved.

“We are pleading with Mr President to intervene in this matter by telling Dangote to slow down, go by the rules of the game. Nobody is against the refinery. If there’s anybody that supported Dangote refinery, more than anything, it’s this association, NOGASA, 100%.

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“But when this thing came up, we said no, we need to advise, we need to give you an idea how to go about it, even though we’ve never one day sat with him. He has never one day invited us,” he said.

Recall that the refinery recently took delivery of 4,000 new Compressed Natural Gas (CNG)-powered trucks for its fuel distribution initiative, scheduled to be launched 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.

However, while speaking at the meeting, the NOGASA National President said: “During our last meeting, we supported the completion of the refinery, but most of our members are afraid of the giant monopoly.

“The entire giant’s inter-direct distribution of their own products with the purchase of 4,000 distribution trucks for nationwide supply makes us worried about staying in the business.

“We wish to assure that they consider the small suppliers who depend on those business employee levels. We need to work with them to ensure that our business survives for the mutual benefit of all involved.”

Korie, also stated that the association could help Nigeria reclaim its top position as the largest economy in Africa, stressing that NOGASA is critical to the stability and development of the nation.

“It is shocking that Nigeria, which was once the number one economy in Africa, is now at the last reported number four in Africa. Fellow members, let me be bold to say that NOGASA can help this nation reclaim our position as number one economy in Africa.

“We are operating after all within an economy in which our products provide over 70% of the hard currency, the foreign exchange of the Nigerian economy. We, therefore, are necessary pillars of the Nigerian political economy by virtue of our position in the downstream sector,” he submitted.

Reflecting on some of the issues confronting the sector, Korie said as difficult as the association’s tasks may seem, it is straightforward to help in to produce win-and-win situations for both suppliers and end-users of petroleum products.

He said NOGASA, as an umbrella organization for all categories of oil and gas suppliers in the downstream sector, must be deliberate to protect the business for the health and unity of the nation.

“Our work as an association is to keep our business open, cooperating among ourselves to improve and maintain the quality of our service on a questionable level of customer satisfaction,” he added.

Also speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said Nigerians should not rejoice yet over the announcement by the Dangote Refinery to distribute petroleum products across the country, as there is always payback time.

“We don’t need to pretend that we don’t know what’s going to happen. Because many of us are clapping hands that one company wants to refine, one company wants to stock, and one company wants to do the logistics of distribution, and one company wants to fix prices. So that one company is going to be both a businessman and a regulator. And so many Nigerians don’t seem to understand the dynamics of the difficulty,” he said.

Recalling what happened in the Cement industry, he said: “Because I want to draw your attention to the fact that we also have similar situations in our cement industry, where you are seeing the same trucks supplying cement.

“So, I’m sure you have seen in all your homes and villages and cities, those small, small container shops that are for cement. So, where the cement is not produced from the factory, and also distributed to those very critical distribution centers, have you bought cement for N115 again? From N115, we are buying now for 10,000 plus,” he said.

The PETROAN boss argued that with a production capacity of 650,000 barrels per day, which has now been upped to 700,000 barrels, the Dangote Refinery should be competing with global refineries, and not to operate as a distributor in the downstream, adding that NOGASA, NATO, PTT could effectively do the job of distribution of the products.

On his part, the Chairman, House Committee on Petroleum Resources, downstream, Hon. Ikenga Ugochinyere, said that the National Assembly is not oblivious of the inefficiencies that sometimes flood the distribution network and the premier issues, adulteration that compromise the quality and endanger the machineries, the frustrating supply bottlenecks that lead to scarcity and the complex logistical hurdles inherent in the transporting products across our vast geographical.

“We are particularly attentive to the recent entry of Dangote into downstream distribution and marketing and its potential impact on existing distributors. This is a significant development and we want to assure you that we are meticulously looking into this situation,” he added.

He said the objective was to foster an environment that would bring about a win-win situation for all stakeholders with full alignment with the principles enshrined in the Petroleum Industry Act PIA.

Ugochinyere who was represented by Hon. Ahmed Saba, a member representing Edu/Moro/Patigi Federal constituency, said the PIA provides a comprehensive framework for improving distribution systems, enhancing transparency, and rigorously ensuring product quality across the entire value chain.

Beyond the PIA, he said “we are continuously exploring the potential areas of reform, focusing on leveraging technology for data tracking, regulating processes, and investing in critical infrastructure to optimize the entire supply chain.

“However, government efforts alone are not sufficient. The path to sustainable growth and efficiency in the downstream sector lies in the robust collaboration and shared responsibility between the government institutions and the private stakeholders. Your insight, your investment, your innovative spirit are crucial catalysts for change.

“By working hand-in-hand, we dismantle the existing barriers, foster a more competitive and equitable environment, and ultimately deliver a more reliable and efficient petroleum product distribution system for all Nigerians.”

Meanwhile, the Chief of the Defence Staff, General Christopher Musa, said although the force is faced with challenges of theft, vandals, illegal bunkering, illegal connections, efforts are being intensified to change the narrative.

Represented at the event by the Director of Logistics, Defence Headquarters, Rear Admiral Jonathan Mamman, the CDS said: “In recent times, the news about all those things have gone down. Then, we talk about distributions along our coastal areas, from Borne to Lagos, from Lagos Fairway Boy to Port Harcourt, Port Harcourt to Calabar, the armed forces have been doing so much, especially the Nigerian Navy with her numerous patrols and coverage of the coastal areas.

“It is blatant to say that the International Maritime Bureau in Malaysia and the United Kingdom have delisted Nigeria from red-flagged countries, of piracy and attack on maritime sectors. So, we’ll be doing much, and our doors are still open for suggestions because we cannot do this alone.”