Independent oil marketers have raised concerns about potential job losses and business shutdowns following the commencement of Dangote Refinery’s direct fuel distribution strategy. Under this new model, Dangote is bypassing traditional depots and marketers by deploying 4,000 trucks to distribute refined products directly to fuel stations across Nigeria.
The development has sparked anxiety within the downstream oil sector, with marketers warning that their role in the fuel distribution chain is being severely threatened. They argue that such a centralised distribution system could marginalize thousands of small and medium-scale operators who rely on fuel marketing for survival.
Speaking on behalf of the marketers, some industry stakeholders lamented that while the refinery’s operation is a welcome development for fuel availability, the exclusion of independent marketers from the distribution process may result in widespread job cuts. They urged the government to intervene by ensuring a level playing field where independent marketers can still actively participate in the fuel value chain.
The stakeholders are calling for policy measures that would incorporate marketers into Dangote’s distribution framework, cautioning that a monopolised distribution model could destabilise the sector and worsen the unemployment rate in the country.
