NOSAGA, PETROAN Reinforce Opposition Against Dangote’s Planned Direct Distribution Of Petroleum Products To End Users

…Cite Impending Negative Economic Consequences, Appeal For FG Intervention

Oppositions to the planned direct distribution of petroleum products to end users by Dangote Refineries climaxed at the Annual General Meeting (AGM) of the Nigerian Oil and Gas Suppliers Association (NOGASA) in Abuja on Thursday.

The President of NOGASA, Benneth Korie, while speaking highlighted the negative implications of Dangote Refineries planned action and warned against it because of its disruptive consequences which he said would not portend well to the oil and gas sector and the overall social economic development of the country.

Among other consequences, NOGASA President cited impending job losses, crippling of private businesses along the oil and gas value chains.

He maintained that if Dangote Refineries meant well for the country and desires to boost businesses in the country, it should focus on refining petroleum products where it is already enjoying high degree of dominance instead of attempting to create crippling monopoly of the sector.

According to Korie, “We are calling on President Bola Ahmed Tinubu to intervene in this matter by telling Dangote to slow down and play by the rules of the game.

“We are not against Dangote Refinery, but we need to advise him on how this business runs, he cannot do it alone.

“We don’t want a repeat of what happened with NNPC. If Dangote supplies directly to customers, the downstream value chain could crumble.”

Korie warned that handling refining, distributing and retailing through filling stations as a single entity is unsustainable, citing the failed attempt by the Nigerian National Petroleum Company Limited at direct distribution.

He recalled that while the association fully supported the operations of the Dangote Refinery right from onset, but the current decision to bypass traditional distributors signals serious threat to existing supply structures and could replicate the challenges that undermined the NNPCL in the past.

Also speaking, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Gillis Harry, threw the Association’s weight behind NOGASA.

Apart from citing impending job losses and crippling of businesses, should Dangote Refineries have its way, he said “If Dangote goes ahead with refining, storing, distributing, and fixing pump prices, the refinery will operate as both a business entity and a regulator.”

He maintained that Dangote’s strategy targets at full control of the downstream petroleum sector meant to enable Dangote to dictate prices, suppress competition and exploit consumers through reduced market options.

According to Gillis‑Harry, “The association is therefore calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Minister of State for Petroleum Resources to urgently implement pricing regulations, reinforce market oversight, ensure crude oil is accessible to local refineries, and take deliberate steps to protect existing jobs in the sector.”