Oil Marketers warn of job losses and monopoly following Dangote Refinery’s direct distribution plan

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Oil marketers in Nigeria are sounding the alarm over Dangote Refinery’s plan to distribute petroleum products directly to end-users, warning that the move could disrupt the existing supply structure and lead to significant job losses in the downstream sector.

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The plan could lead to widespread job losses, particularly among truck drivers and owners, and potentially create a monopoly, allowing Dangote to fix prices and limit competition. The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) argues that Dangote’s plan could displace independent marketers and compromise supply chain stability.

“We are not against Dangote Refinery, but we believe that direct distribution will disrupt the existing system and cause more harm than good,” said Benneth Korie, NOGASA President. “We plead that Mr President intervene in this matter by telling Dangote to slow down, go by the rules of the game, and focus on refining products and selling to marketers, who can then distribute to end-users.”

PETROAN President Billy Gillis-Harry expressed similar concerns, stating, “This massive refinery is expected to satisfy domestic fuel demand and export surplus products. We are concerned that the company may use its market power to fix prices and limit competition, similar to what we’ve seen in other sectors.”

The House of Representatives Committee on Petroleum Resources is reviewing the situation, with Ahmed Saba assuring that lawmakers are carefully looking into the matter. “This is a big change, and I want to assure you that we are carefully looking into this situation,” Saba said. “Our goal is to create a situation where everyone wins, following the rules set in the Petroleum Industry Act.”

The lawmakers aim to create a fair and competitive environment, ensuring that the implementation of the Petroleum Industry Act promotes transparency and accountability in the sector.

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