Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Thursday warned that the planned nationwide direct distribution of petroleum products by the Dangote Refinery will trigger a disruption in the fuel supply chain.
Giving the warning at the Annual General Meeting in Abuja, NOGASA President, Benedict Korie, also said it will also lead to massive job loss across the country as thousands of marketers and depot owners would lose their source of livelihood.
The NOGASA president accused the refinery of attempting to monopolise the market by sidelining key stakeholders who have kept the system running for years.
He said: “The entire giant’s inter-direct distribution of their own products with the purchase of 4,000 distribution trucks for nationwide supply makes us worried about staying in the business.
“We wish to assure that they consider the small suppliers who depend on those business employee levels. We need to work with them to ensure that our business survives for the mutual benefit of all involved.
“No single player should be allowed to dominate the downstream sector to the detriment of thousands of businesses and workers.”
Dangote Refinery recently took delivery of 4,000 new CNG powered trucks in readiness for the launch of its fuel distribution initiative on August 15.
According to the refinery, the initiative is expected to save Nigerians over N1.7 trillion annually, and lift 42 Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.
The refinery said the strategic programme is part of its broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development.
But industry players say it is all part of a grand long term plan by Refinery to monopolise the market.
While saying the association must be deliberate to protect the business for the health and unity of the nation, the NOGASA President urged President Bola Tinubu to intervene so that the refinery plays by the rules.
“We are pleading with Mr President to intervene in this matter by telling Dangote to slow down, go by the rules of the game. Nobody is against the refinery. If there’s anybody that supported Dangote refinery, more than anything, it’s this association, NOGASA, 100%.
In his address, national president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, insisted that the long term agenda of the Dangote Refinery is to monopolise the sector.
Citing the cement industry as an example, Gillis-Harry, insisted that it was too early for Nigerians to commend the refinery’s planned direct fuel supply.
“We don’t need to pretend that we don’t know what’s going to happen. Because many of us are clapping hands that one company wants to refine, one company wants to stock, and one company wants to do the logistics of distribution, and one company wants to fix prices. So that one company is going to be both a businessman and a regulator. And so many Nigerians don’t seem to understand the dynamics of the difficulty.
“Because I want to draw your attention to the fact that we also have similar situations in our cement industry, where you are seeing the same trucks supplying cement.
“So, I’m sure you have seen in all your homes and villages and cities, those small, small container shops that are for cement. So, where the cement is not produced from the factory, and also distributed to those very critical distribution centers, have you bought cement for N115 again? From N115, we are buying now for 10,000 plus,” he said.
On his part, the chairman, House Committee on Petroleum Resources, downstream, Hon. Ikenga Ugochinyere, said the National Assembly is not oblivious of the inefficiencies that sometimes flood the distribution network and the premier issues, adulteration that compromise the quality and endanger the machineries, the frustrating supply bottlenecks that lead to scarcity and the complex logistical hurdles inherent in the transporting products across our vast geographical.
Ugochinyere who was represented by Hon. Ahmed Saba, a member representing Edu/Moro/Patigi Federal constituency, said, “We are particularly attentive to the recent entry of Dangote into downstream distribution and marketing and its potential impact on existing distributors. This is a significant development and we want to assure you that we are meticulously looking into this situation.”