Dangote Refinery distribution plan triggers backlash from oil marketers, with NOGASA warning of supply collapse and depot prices rising nationwide
Dangote Refinery Distribution Plan has triggered an escalating row across Nigeria’s downstream oil sector, with major petroleum marketers warning of imminent supply chain collapse, job losses, and price instability.
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) sounded the alarm during its AGM in Abuja, urging Dangote to suspend plans to bypass depots and deliver petrol directly to large end-users nationwide.
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According to NOGASA President Bennett Korie, the direct distribution strategy launched under a ₦720bn investment in 4,000 CNG-powered trucks risks replicating the failures of NNPC’s former monopoly, which led to the collapse of state-owned refineries.
“You can’t refine, distribute, retail, and regulate simultaneously. That model already failed with NNPC,” Korie said.
The association pleaded with President Bola Tinubu to intervene and facilitate dialogue with the Dangote Group to protect over 50,000 retail outlets and thousands of jobs linked to independent fuel marketing.
Meanwhile, petrol prices spiked at depots from ₦815/litre to ₦870/litre following a sudden halt in sales at Dangote’s terminals, deepening market uncertainty.
Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), also warned against creating a “dangerous monopoly,” comparing it to past market dominance in the cement sector.
Despite the backlash, Dangote officials defended the move as pro-consumer, claiming the goal was to eliminate logistics costs, save Nigerians over ₦1.7tn annually, and support MSMEs with more affordable energy.
“Why be angry when we’re not even charging for delivery?” a Dangote Group official said. “The market is big enough for everyone.”
But fears remain that consolidating refining, logistics, and distribution in one corporate entity could destabilize Nigeria’s fragile fuel economy.
IPMAN Vice Chairman Hammed Fashola called for caution and dialogue, noting, “Everyone’s just trying to survive. Let’s hope stakeholders reach common ground.”
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With competition heating up and depot prices climbing, Nigerians may see another pump price increase soon, further pressuring household budgets.
