• Dangote Refinery plans to bypass intermediaries and sell fuel directly starting August 15.

• Oil distributors warn the new model threatens thousands of jobs across logistics and retail.

• NOGASA and PETROAN call for urgent talks and may stage a work stoppage.

With just three weeks to go before launching its own fuel distribution network, the Dangote Group faces mounting resistance from Nigeria’s petroleum product distributors. These players accuse the company of sidelining them and putting thousands of jobs at risk.

Starting August 15, Dangote Refinery will begin selling petrol, diesel, and paraffin directly to end-users, including service stations, industrial firms, airlines, and telecom operators. By cutting out intermediaries, the group aims to take full control of the supply chain. The new system will rely on a fleet of 4,000 compressed natural gas (CNG) trucks to deliver fuel directly to large consumers across the country.

By merging refining, logistics, and retail operations, Dangote seeks to eliminate the margins and constraints imposed by traditional transporters and distributors. But the move has drawn sharp criticism from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), one of the largest distributor groups in the country.

“It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,” said NOGASA’s president, Benneth Korie, who warned that thousands of jobs tied to oil logistics—drivers, agents, transporters—are under serious threat.

NOGASA has joined forces with the Petroleum Products Retailers Association of Nigeria (PETROAN), which voiced similar concerns last month, warning of widespread job losses.

The downstream oil sector had been bracing for this move for several months. By consolidating every segment of the distribution chain, Dangote significantly undermines the role of independent distributors.

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

He announced that NOGASA will hold a general meeting on 31 July to determine its course of action. Options under consideration include a strike and direct negotiations with Dangote to ensure distributors remain part of the system.

The standoff has reignited debate around the social implications of vertical integration in Nigeria’s oil sector. Dangote’s strategy promises greater efficiency and reduced costs—but at the expense of thousands of livelihoods.

The government now faces a critical balancing act: how to reconcile economic modernization with job protection. If mismanaged, the fallout could spark a social crisis in an already fragile sector. Nigeria continues to grapple with the effects of fuel subsidy reforms, making the stakes even higher.

This article was initially published in French by Olivier de Souza

Edited in English by Ange Jason Quenum