Less than a month before Dangote Refinery begins its direct fuel distribution initiative, oil suppliers in Nigeria are urging the company to reconsider the move.

Starting August 15, Dangote plans to supply fuel directly to filling stations, telecom companies, aviation operators, and other bulk consumers—bypassing traditional depots and middlemen.

But the Natural Oil and Gas Suppliers Association of Nigeria has raised alarm over the potential impact on jobs in the sector.

In a statement, NOGASA President Benneth Korie warned that the plan to sidestep the existing distribution network would disrupt the supply chain and threaten the livelihoods of thousands.

With 4,000 new Compressed Natural Gas-powered tankers set to distribute petrol, diesel, and jet fuel nationwide, Dangote aims to eliminate the need for intermediaries.

NOGASA members, who currently bridge the gap between refineries and end users, fear the new model could push them out of business.

“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 doing so, a lot of jobs are at stake, and we are kicking against this new way of supplying products to end users,” Korie stated.

He expressed concern that many NOGASA members and their employees could face job losses, warning that bypassing the existing supply chain would render thousands of trucks, drivers, and logistics personnel redundant.

“It will remove jobs from a lot of them, and some of our staff will be redundant, and some of our trucks will be redundant,” said Korie.

He added that NOGASA’s upcoming meeting on July 31 in Abuja would focus on forming a unified response to the development, including the possibility of halting operations and engaging directly with Dangote to seek a resolution.

He said the association is pushing for a distribution model where Dangote supplies products to NOGASA members, who would then handle sales to end-users, in order to preserve jobs across the supply chain.

“We are holding a general meeting on July 31 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 stated.