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Marketers warn against disruption as Dangote plans direct fuel supply

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The Natural Oil and Gas Suppliers Association of Nigeria has warned that the Dangote Petroleum Refinery’s plan to bypass existing distribution channels and supply refined petroleum products directly to end-users would lead to a nationwide disruption, long-term product scarcity, and the collapse of existing supply networks.

The oil and gas suppliers called on the refinery to halt its plan and seek further dialogue before commencing the distribution of products to end users, urging it to learn from what happened to non-functional refineries under the management of the Nigerian National Petroleum Company Limited.

They also called on President Bola Tinubu to intervene in the issue, stressing that Dangote alone cannot handle nationwide distribution of products sustainably. The NOGASA National President, Bennett Korie, made the call during the association’s Annual General Meeting held on Thursday in Abuja.

However, an official of the Dangote Group described the position of the dealers as anti-Nigeria, arguing that the plan by Dangote was to remove the cost of logistics in the movement of petrol nationwide.

Speaking with The PUNCH, while reacting to the development, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said Nigerians should not rejoice yet over the announcement by the Dangote refinery, as he backed the sister oil marketing group, NOGASA.

Meanwhile, it was observed on Thursday that the prices of petrol at depots spiked by up to seven per cent, from the N815 per litre it sold on Wednesday to N870 per litre on Thursday.

Recall that the $20bn Dangote refinery recently disclosed plans to deploy 4,000 new Compressed Natural Gas-powered tankers for nationwide distribution of petrol and diesel directly to marketers, manufacturers, telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.

The refinery took delivery of 4,000 new CNG-powered trucks for its fuel distribution initiative, scheduled to be launched on August 15. The initiative, which is intended to provide more efficient transportation across Nigeria and beyond, has been applauded by some industry experts. With the investment of N720bn, the initiative is expected to save Nigerians over N1.7tn annually, and lift 42 million Micro, Small, and Medium Enterprises 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.

However, Korie, speaking in his address, said if existing retail outlets were forced out of business due to Dangote’s direct distribution approach, it would be difficult to revive the supply chain in the event of any disruption at the refinery.

He further warned that handling refining, distribution, and retail through filling stations as a single entity is unsustainable, citing the failed attempt by the Nigerian National Petroleum Company Limited at direct distribution. He stated that the state-owned refineries began to decline after the oil company ventured into retail distribution.

“We are pleading that Mr President should intervene in this matter by telling Dangote to slow down, and go by the rules of the game. Nobody’s against the refinery. If there’s anybody who supported Dangote Refinery more than any other organisation, it is this association.

“But when this issue came up, we said, no, we need to advise, we need to give you an idea how to go about it. What is important to us is that the refinery is blending, the product is coming out, and Nigerians are enjoying the product that is blended today.

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“Now, some Nigerians will be thinking maybe because we don’t want him to do this or because of competition. No, it is because we don’t want what happened to NNPCL to happen to Dangote Refinery. The reason is that, before now, NNPC refined products and distributed them through their subsidiary at that time.

“And everything was moving smoothly, it wasn’t bad. Until people who I think advised Dangote today, went to advise NNPC to start doing distribution directly, which is the filling station that you have in NNPC filling stations. As soon as this NNPC filling station started, that was when our refinery started going down,” Korie said, warning that the same fate could befall Dangote’s $20bn refinery if it follows a similar path.

Korie stressed that while the association fully supports the operations of the Dangote refinery, the decision to bypass traditional distributors poses a serious threat to existing supply structures and could replicate the challenges that undermined the NNPCL in the past.

He warned that handling refining, distribution, and retail through filling stations as a single entity is unsustainable.  “Because they were concentrating on their filling stations. I am not saying they are not paying attention to refineries, but you can’t do it alone. You are blending, you are refining, and at the same time operating, and again, add a filling station in your operation.

“You will have a problem. That is why today you have this problem of our refineries not working. So because of this, we now say, No, please don’t go there. Concentrate on this thing you are doing. You are doing good. You are finding the product good, sell to the marketers, marketers sell to the end users. Remove your hand from this direct distribution. It will bring you problems, and once you start solving that problem, you will not have time to fix the refinery or operate the refineries very well.

“So it’s important that you concentrate on this refinery. Blend enough for us and sell some to other countries. And that way, the job there will be stable, and our own here will be stable. We are capable of distributing the product. All we need you to do, blend, sell to depot owners, and they will go there and buy, and distribute to the end users. That way, you balance the system.”

He further expressed NOSAGA’s readiness to work with the Refinery to ensure that the business survives for the mutual benefit of all involved. The NOGASA  president added, “During our last meeting, we supported the completion of the refinery, but most of our members are afraid of the giant monopoly.

“The entire giant’s indirect distribution of their 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.”

Korie noted the economic impact of such centralisation, stating that thousands of Nigerians working across over 50,000 filling stations and logistics chains could be displaced if independent marketers are sidelined. He called on the government to facilitate dialogue between Dangote Group and key industry stakeholders, including major and independent Petroleum marketers among others.

Also speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said Nigerians should not rejoice yet over the announcement by the Dangote refinery to distribute petroleum products across the country, as there is always payback time.

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“We don’t need to pretend that we don’t know what’s going to happen. Because many of us are clapping hands, one company wants to refine, one company wants to stock, 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,” he said.

Reflecting on what happened in the cement industry, he said, “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 centres, have you bought cement for N115 again? From N115, we are buying now for 10,000 plus,” he said.

He raised concerns over what he described as Dangote’s attempt to dominate the market, noting that retail outlet operators are losing as much as N80 per litre due to sudden price adjustments.

The PETROAN boss argued that with a production capacity of 650,000 barrels per day, which has now been upgraded to 700,000 barrels, the Dangote  refinery should be competing with global refineries, and not operate as a distributor in the downstream, adding that NOGASA, NATO, and PTT could effectively do the job of distribution of the products.

“Just yesterday, some of them began selling products at N817 per litre. That represents a loss of over N80 per litre for filling station operators. When you consider the volume of product involved, it becomes clear that, very soon, salaries may not be paid.

“The association is therefore calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources to urgently implement pricing regulations, reinforce market oversight, ensure crude oil is accessible to local refineries, and take deliberate steps to protect existing jobs in the sector,” Gillis Harry noted.

Dangote reacts

A senior official of the Dangote Group expressed surprise that an organisation could threaten to disrupt fuel supply because an individual wants to distribute fuel free of charge to Nigerians.

“Why would they want to disrupt? Somebody wants to distribute fuel for free (without the cost of logistics). We are not asking for money. We are saying part of the reason why PMS is expensive is because of the logistics, and we are removing the cost. We are removing that money. So, why are they angry?  Why the disruption, if not anti-Nigeria? They hate Nigeria; they don’t want this country to prosper.

“If someone wants to do something free, we are not asking for money. We are not saying, once we use our truck to supply you with PMS, you are going to pay us money. Why are you angry that an individual, a private sector person, wants to do that? Why are you angry? Why are you pained? And is this market not big enough for everybody to survive?” the official, who spoke in confidence because he was not permitted to talk on the matter, asked.

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The official discountenanced claims that NOGASA members would lose their source of livelihood.

“How will they lose their job? The market is big enough. You heard what the NNPC man said yesterday about the fact that they are not willing to sell the Port Harcourt refinery. And there are other modular refineries everywhere. Some people are working. They will still be in use. They will still be useful.

“Okay, we are starting with 4,000 trucks. There are 774 Local Governments in Nigeria. Can the 4,000 trucks really go around the 774 LGs? No. Why are we deceiving ourselves? Why are we anti-Nigeria? Why don’t we want this country to progress and develop? Absolutely, I don’t see any need for them to go on strike. Nobody’s threatening anybody. Nobody’s interested in a monopoly. This country can thrive with everybody doing their business. Dangote is not saying, ‘don’t do your business,” the official stated.

IPMAN National Vice Chairman, Hammed Fashola, said he would not know whether or not NOGASA members have the strength to disrupt fuel supply in Nigeria.

According to him, everybody is trying to survive in the oil business as they perceived Dangote’s plan as a means of cutting them out of business.

“Everybody wants to make sure they remain in business. You know, there have been a lot of reactions to that move by Dangote. Naturally, transporters will not be happy, and intermediaries won’t like it. You know this thing has a value chain, and there are a lot of people playing one role or the other in the supply chain.

“I believe Dangote, too, will be listening to the stakeholders. So, I think at the end of the day, everybody will be on the same page. Let’s see what happens. I don’t know their strength. I told you I’m not a member. So, I cannot tell if they have the strength to disrupt fuel supply. Before they can say they want to disrupt the supply, I think maybe they have the capacity. But let’s wait and see,” Fashola said.

Depots hike prices

Meanwhile, depot prices for petrol spiked by up to seven per cent, from the N815 per litre it sold to customers on Wednesday to N870 per litre on Thursday. This was as Dangote refinery abruptly suspended petrol sales across its terminals, deepening supply uncertainty and accelerating price movements nationwide.

In a notice titled “Important Update on DPRP Collection Account for PMS”, Dangote refinery instructed marketers to halt all payments for PMS loading at its gantry, effectively freezing further allocations. “Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold,” the internal memo read. “Further updates will be communicated shortly.”

Earlier this week, importers dropped petrol prices below the price offered by the Dangote Petroleum Refinery, sparking a new wave of competition.

But fresh findings have now revealed that depot owners have hiked their prices based on the increased crude price, indicating a possible increase in pump price next week nationwide. Findings by our correspondent using petroleumprice.ng showed that six depots including NIPCO, Aiteo, Rain oil, MenJ, Sahara and Aipec have all effected an increase to N870 per litre. The Dangote refinery depot sold slightly less at N865 per litre.

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Jide Kosoko laments debt following N300m movie cinema loss

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Veteran Nollywood actor and filmmaker Jide Kosoko has said he is in debt after his film, Eleko: Oba Esugbayi, failed to recoup its production cost of over N300m in cinemas.

Kosoko disclosed this in a now trending clip from his interview on African A-List published on October 17, where he explained that the money used to produce the film came from investors who expected returns on their investment.

According to him, the film which premiered in the cinemas in March, failed to generate enough revenue to recover its production cost, while the little money earned was shared among those involved.

“My film ‘Eleko: Oba Esugbayi’ that recently came out and we took to the cinemas, cost us over N300 million. Do I have 300 million? You should know that some people gave it to me and it was not that they dashed me, they invested in it and we took the film to the cinemas,” he said.

He added, “Different things happened and we did not earn our money back. The little that was earned was split. As I am, if you hear someone with debt dancing around their neck, it is me.”

PUNCH Online had earlier reported that Kosoko revealed he had been living with diabetes since 1996, saying his decades-long experience with the condition had given him a better understanding of his health.

The actor made this known in an interview on African A-List, uploaded to YouTube on Saturday.

“I became diabetic in 1996; I understand my health better than some doctors do. Do not misquote me. I am not saying I know how to do everything, I just do not want to die,” Kosoko said.

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He also spoke about his personal life, disclosing that he had lost three wives, including the mother of his daughter, Bidemi Kosoko, who died during childbirth.

“I lost my wife during childbirth; that’s Bidemi’s mother. I have lost three wives,” he said.

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Airline extends Saudi flights suspension after Houthi strikes

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UAE national airline Etihad has extended until November 5 its suspension of flights to Riyadh and Dammam in Saudi Arabia, targeted by strikes from Yemen’s Houthis.

Etihad had suspended its service to Riyadh on October 12, two days after a deadly attack on a passenger terminal killed 13 people.

In a statement on Thursday, Etihad specified that flights to and from Riyadh and Dammam would remain suspended due to “operational disruptions”.

On Wednesday evening, two people were killed and eight others wounded in an attack on Dammam airport.

The airport, however, reopened the following day, while the capital’s airport remains closed.

Etihad added that it would operate only daytime flights to the western city of Jeddah, with night flights cancelled until November 5.

In recent weeks, Houthi attacks on Saudi civilian infrastructure including oil facilities and airports have reached a scale unprecedented since the start of the conflict in Yemen in 2014.

AFP

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States push for suspension of Paris Club deductions

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State governors have rejected deductions from allocations due to the states from the Federation Account in the September 2026 revenue-sharing cycle, arguing that the deductions would further squeeze their finances, The PUNCH reports.

The states also called for the suspension of deductions linked to the Paris Club refund to local government councils, alleging that the payments were resumed without prior communication and reconciliation with affected states.

Their opposition comes after the three tiers of government shared N668.4bn less of August 2026 revenue distributed in September, heightening concerns over the impact of lower revenue receipts on states’ ability to meet their financial obligations.

The governors also demanded the redistribution of the proposed N240bn savings, insisting that the funds should be shared among the federal, state and local governments rather than deducted or retained under the proposed arrangement.

The complaints were raised by several state Accountants-General during the technical session of the Federation Account Allocation Committee meeting, according to a report by the committee’s technical sub-committee, dated 14 October, 2026, obtained by The PUNCH on Thursday.

The meeting, held at the Federal Ministry of Finance headquarters in Abuja, considered revenue accounts for August and the amounts available for distribution in September.

The report showed that the total amount recommended for distribution to the federal, state and local governments stood at N2.339tn, compared with N3.007tn shared in the previous month, representing a decline of N668.4bn.

The statutory revenue available for distribution dropped more sharply, falling from N2.283tn in the previous month to N1.566tn in August, a decrease of N717.08bn.

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However, revenue from Value Added Tax increased to N773.23bn from N724.46bn, providing some relief amid the decline in statutory revenue.

The Director of the Federation Account Department, Okolie Rita, who presented the accounts, told the committee that the statutory revenue available for distribution was calculated after deducting N85.71bn and N36.83bn as four per cent costs of collection for the Nigeria Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission, respectively.

The revenue decline triggered calls from state representatives for the Federal Government to release additional funds and reconsider deductions that they said were putting pressure on state finances.

The Accountant-General of Akwa Ibom State, Andrew Essien, observed that August revenue had dropped considerably compared with July and appealed for the proposed N240bn savings to be returned to the distributable pool.

The Accountant-General of Jigawa State, Abdullahi Shehu, recalled an earlier proposal to augment the previous month’s revenue with N250bn, which he said had not been implemented. He urged the committee to combine the promised N250bn with the proposed N240bn savings and redistribute the funds to the three tiers of government.

The Accountant-General of Bayelsa State, Tokoni Ifidi, supported the demands and raised concerns about deductions for the Paris Club refund to local government councils.

She said the deductions were introduced without prior communication to the states, despite what she described as an earlier commitment in 2025 concerning the deductions, which began in February that year and were stopped by a court order in April 2026.

The document read, “AG Akwa Ibom observed a considerable drop in the revenue of August, 2026 compared to July, 2026 and appealed for the proposed savings of N240bn to, instead, be redistributed. AG Jigawa recalled that there was a proposal to augment the previous month’s revenue with the sum of N250bn but it had not been done. He suggested that the N250bn promised in the previous month should be added to the proposed savings of N240bn and be redistributed.”

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The Director of the Federation Account Department explained that the Paris Club deductions were not new, noting that they had previously been suspended following a court order.

The Bayelsa representative, however, maintained that the deductions should continue to be suspended pending reconciliation. She said the Economic and Financial Crimes Commission had held reconciliation sessions with local government councils and was awaiting feedback from the Office of the Accountant-General of the Federation on the commencement and continuation of the deductions.

The Accountant-General of Niger State, Saidu Abdullahi, criticised the handling of the deductions, arguing that the ministry had made a mistake from the beginning by distributing funds without adequate planning and proper communication.

He insisted that previous agreements should be honoured, particularly the proposed N250bn augmentation, while supporting calls for the redistribution of the N240bn savings.

The Accountant-General of Cross River State, Glory Effiong, also backed the demand for the savings to be redistributed, observing that deductions had consumed a substantial portion of the earnings of many states.

She said she had not been invited to any reconciliation meeting on the Paris Club debt since joining the committee and urged the Office of the Accountant-General of the Federation to improve its communication with state representatives.

The Accountant-General of Jigawa State further questioned the amount deducted under security-related expenditure, describing the quantum of deductions as alarming and calling for a review.

The Accountant-General of Nasarawa State, Musa Mohammed, stressed that states should be properly informed and invited to reconciliation meetings before decisions affecting their allocations were implemented.

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Source: punchng.com

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