The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has cautioned the Dangote Petroleum Refinery against its proposed plan to distribute refined products directly to end-users, warning it could disrupt the nation’s supply chain, create long-term scarcity, and collapse existing distribution networks.

Speaking at the association’s Annual General Meeting in Abuja, NOGASA National President, Bennett Korie, urged the refinery to suspend the plan and engage in dialogue with key stakeholders. He called on President Bola Tinubu to intervene, stressing that no single entity can sustainably handle nationwide fuel distribution alone.

Korie drew parallels to the Nigerian National Petroleum Company Limited’s (NNPCL) failed direct retail model, warning that Dangote risks repeating similar mistakes. “Blend, sell to depot owners, and let them handle distribution,” he advised, emphasizing that refining, distribution, and retail under one roof is unsustainable.

In defense, a Dangote Group official described the association’s position as “anti-Nigeria,” stating that the refinery’s plan aims to cut logistics costs and enhance efficiency. The refinery has invested in 4,000 CNG-powered trucks for direct delivery and is expected to launch the initiative on August 15, aiming to save Nigerians over ₦1.7 trillion annually and boost MSMEs.

Meanwhile, petrol depot prices have already surged by 7%, rising from ₦815 to ₦870 per litre on Thursday. Industry reactions remain mixed, with the Petroleum Products Retail Outlet Owners Association of Nigeria also expressing concern.