Many marketers and tanker drivers were concerned that the refinery’s projected bypass of established distribution methods would result in massive job losses and disrupt the national gasoline supply chain.
To address these issues, the Dangote Group recently held a high-level meeting with major industry players, including the National Association of Road Transport Owners (NARTO) and the Natural Oil and Gas Suppliers Association of Nigeria.
Chinedu Ukadike, NOGASA’s National Publicity Secretary, told The PUNCH on Wednesday that both parties had come to a mutual agreement.
According to Ukadike, the refinery guaranteed merchants that it would not sell petroleum products directly to consumers.
Instead, the refinery will sell to NOGASA members in bulk, who would subsequently distribute to customers via established channels.
This measure successfully protects the roles of marketers and tanker drivers, reducing worries of widespread displacement in the industry.
NARTO’s National President, Yusuf Othman, also acknowledged the partnership, noting that the arrangement will guarantee a smoother integration of Dangote’s gasoline distribution infrastructure while not undermining long-standing industry participants.
Agreement between Dangote and marketers
I want to say that Dangote heeded our plea by agreeing with us that they will be sending these products to the bulk buyers, who are the suppliers.
Based on that, we don’t have issues again,” NOGASA’s National Publicity Secretary revealed to the Punch.
“What we were saying ab initio was the issue of the supply chain in which we have invested so much. We requested that the supply chain be given to us in distribution, which I think Dangote has also complied with, since he is not going to supply directly to end users. We want to appreciate him for that,” he added.
NOGASA members panicked, according to Ukadike, because they believed Dangote would sell directly to consumers.
“We are the bulk buyers; we buy in bulk, and we supply. Before, we were thinking that he was going to supply by retailing to the end users, the telecom masts, hotels, and the rest of them, but now he said no, that he is going to supply to the bulk buyers,” he said.
“This is giving us that power as suppliers to continue our jobs. We were afraid that if he sold fuel directly to end users, our labour capacity would be lost and our return on investment would be in jeopardy,” he continued.
Furthermore, members of NOGASA have begun to sign up on the Dangote site to purchase refinery goods in bulk. Bulk purchasers will receive fuel from the vehicles, he noted.
“Some of our members who are buying in bulk are now their companies in line with the guidelines they gave to us for registration, so that they can take these products and sell to end users. We were told that the 4,000 CNG-powered trucks will be delivering to bulk buyers. Once you pay, they deliver to you, not to end users,” Ukadike explained.
Consultations with stakeholders regarding the impact of Dangote’s fuel distribution scheme on tanker drivers are still ongoing,” stated NARTO President Othman.
According to Othman, the group had already met with Dangote, and more meetings were planned.
“We are still consulting with our stakeholders. We met Dangote first, and we are going to meet him again,” he stated
With this agreement in place, industry observers believe the project would improve efficiency, cut prices, and increase the use of cleaner CNG-powered vehicles, all while protecting thousands of jobs in Nigeria’s petroleum distribution network..
