Scheme

  Less than a month before the commencement of Dangote refinery’s direct fuel distribution scheme, oil suppliers in Nigeria have asked the company to rescind its decision. From August 15, Dangote would begin supplying fuel directly to filling stations, telecommunication companies, the aviation sector, and other bulk fuel consumers. However, suppliers under the aegis of the Natural Oil and Gas Suppliers Association of Nigeria expressed concerns that the move could lead to widespread job losses across the sector. In a statement made available to our correspondent, NOGASA President Benneth Korie said Dangote’s plan to bypass the traditional distribution network would disrupt the oil and gas supply chain and threaten the livelihoods of thousands of workers. Korie’s comment confirmed a report by Sunday PUNCH that there was growing tension among fuel suppliers and tanker drivers over Dangote’s new distribution scheme. With 4,000 new Compressed Natural Gas-powered tankers for nationwide distribution of petrol, diesel, and jet fuel directly to marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and other large consumers, Dangote intends to shun traditional depots and middlemen. But members of NOGASA, who serve as intermediaries between refineries and final consumers, feared that the distribution model would render them ’useless’ in the industry. “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. By doing so, a lot of jobs are at stake, and we are kicking against this new way of supplying products to end users,” Korie stated. He worried that many NOGASA members and their employees could lose their jobs, saying that the redundancy of trucks, drivers, and other logistic staff looms as a direct result of the bypassed supply chain. “It will remove jobs from a lot of them, and some of our staff will be redundant, and some of our trucks will be redundant,” said Korie, who added that NOGASA’s meeting scheduled for July 31 in Abuja would focus on developing a unified strategy to address the issue, including the possibility of downing tools and direct engagement with Dangote to seek a resolution. He said the association is advocating for a distribution structure where Dangote supplies products to NOGASA members, who will then sell to end-users to preserve jobs within the supply chain. “We are holding a general meeting on July 31 to decide whether to down tools and to find a way to ensure that Dangote will supply the product to them rather than supply to the end users. And we will, in turn, supply to the end users. These are chains of distribution,” Korie explained. Punch