July 21, 2025, 22:26:09 (IST)
Dangote's direct fuel supply strategy faces opposition from Nigerian distributors
The Nigerian Association of Oil and Gas Suppliers (NOGASA) is formally opposed the new operational strategic shift by Dangote refineries, supplying petroleum products directly to the market and bypassing traditional distributors, Premium Times said in its report. Nogasa argues that the vertical integration plan will make members who act as intermediaries between refineries and the end consumers obsolete, pose a major threat to their business models. This development occurs within the context of deregulated downstream sector following the removal of fuel subsidies by the Nigerian government in May 2023. The initiation of operations at Dangote Facility, Africa's largest single-train refinery, is set to fundamentally change Nigeria's energy supply chain and create a competitive market environment from self-dependentness.
