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NOGASA Raise Alarm Over Dangote’s Refinery Direct Distribution Plan

by Nelson Ugwuagbo
Dangote

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised concerns over the Dangote Petroleum Refinery’s plan to distribute refined products directly to end-users, warning that the move could destabilise existing supply structures across the country.

Speaking during the association’s Annual General Meeting on Thursday in Abuja, NOGASA National President, Bennett Korie, urged the refinery to suspend the proposed distribution strategy and engage in broader consultations with industry stakeholders. He cautioned that bypassing established supply channels could lead to long-term product scarcity and the collapse of the current distribution network.

Korie called on President Bola Tinubu to intervene, stating that the Dangote Refinery alone lacks the infrastructure to sustainably handle nationwide distribution. He further referenced the failures of previous state-managed refineries as cautionary examples.

In response, an official of the Dangote Group dismissed the suppliers’ position as “anti-Nigeria,” asserting that the refinery’s distribution plan aims to reduce logistics costs and enhance efficiency in petroleum product delivery nationwide.

Echoing NOGASA’s concerns, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, advised Nigerians not to celebrate the refinery’s announcement prematurely. He backed NOGASA’s stance and called for caution as the distribution model could have unintended consequences for the downstream sector.

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