Depot marketers lamented over Dangote's direct fuel distribution strategy, declaring it a “death sentence.”
After Dangote Petroleum Refinery announced it would start directly distributing petrol and diesel nationwide beginning August 15, members of the Dangote Marketers Group, an association of licensed depot marketers, have voiced significant concerns. They described this change as a "death sentence" for their part in the downstream value chain.
The marketers, who act as links between depot proprietors and fuel station managers, are concerned that the refinery's new approach of sidestepping traditional middlemen to provide direct sales and logistics to consumers will threaten their livelihood.
In a group chat, one marketer straightforwardly claimed that "the supply chain is dead." Others described it as an "evolution masked as a revolution" and cautioned that the resulting ripple effects could impact jobs, businesses, and even families.
Traditionally, independent marketers act as essential links by providing financing and logistical support between fuel depots and retail stations. Owners of fuel stations frequently depend on them for credit, assistance with loading processes, and managing transportation logistics.
Dangote's innovative approach eliminates the need for middlemen by providing direct sales, integrated logistics with a fleet of 4,000 trucks powered by CNG, and even offering credit options for bulk purchasers.
“Now imagine manufacturers boycotting middlemen and going straight to end users,” lamented Black Bishop, another group member. “End users will receive sealed, tamper-proof products delivered on time. All hell is about to break loose.” Mide Leo exclaimed.
Another marketer, Mide Loe, narrated how one of his clients, who owns over 15 haulage trucks, went silent after hearing the news.
“His silence was deafening,” Joe wrote. “Businesses will fold up. Homes will be broken. Fathers and mothers will be rendered jobless. This is sad.”
“Everyone dey collect… depot owners, importers, marketers, truckers, PTD, baranda” said Peter Akande, voicing frustration over the perceived monopoly.
Some marketers also questioned the silence of industry regulators like NMDPRA and the defunct PEF, which had developed the Aquila tracking platform. “What are the regulators doing? Someone should provide rules of the game,” said Stephen, emphasizing the need for policy safeguards to protect existing players.
“This isn’t a revolution. It’s the beginning of a one-man show in the downstream sector,” warned another group member. “May Nigeria succeed, but the market must remain competitive.”
“Let’s ask him how he intends to cover the cost of transportation. Is it embedded in product pricing? Will it lead to a price increase?” asked Black Bishop
Depot marketers lamented over Dangote's direct fuel distribution strategy, declaring it a “death sentence.”
After Dangote Petroleum Refinery announced it would start directly distributing petrol and diesel nationwide beginning August 15, members of the Dangote Marketers Group, an association of licensed depot marketers, have voiced significant concerns. They described this change as a "death sentence" for their part in the downstream value chain.
The marketers, who act as links between depot proprietors and fuel station managers, are concerned that the refinery's new approach of sidestepping traditional middlemen to provide direct sales and logistics to consumers will threaten their livelihood.
In a group chat, one marketer straightforwardly claimed that "the supply chain is dead." Others described it as an "evolution masked as a revolution" and cautioned that the resulting ripple effects could impact jobs, businesses, and even families.
Traditionally, independent marketers act as essential links by providing financing and logistical support between fuel depots and retail stations. Owners of fuel stations frequently depend on them for credit, assistance with loading processes, and managing transportation logistics.
Dangote's innovative approach eliminates the need for middlemen by providing direct sales, integrated logistics with a fleet of 4,000 trucks powered by CNG, and even offering credit options for bulk purchasers.
“Now imagine manufacturers boycotting middlemen and going straight to end users,” lamented Black Bishop, another group member. “End users will receive sealed, tamper-proof products delivered on time. All hell is about to break loose.” Mide Leo exclaimed.
Another marketer, Mide Loe, narrated how one of his clients, who owns over 15 haulage trucks, went silent after hearing the news.
“His silence was deafening,” Joe wrote. “Businesses will fold up. Homes will be broken. Fathers and mothers will be rendered jobless. This is sad.”
“Everyone dey collect… depot owners, importers, marketers, truckers, PTD, baranda” said Peter Akande, voicing frustration over the perceived monopoly.
Some marketers also questioned the silence of industry regulators like NMDPRA and the defunct PEF, which had developed the Aquila tracking platform. “What are the regulators doing? Someone should provide rules of the game,” said Stephen, emphasizing the need for policy safeguards to protect existing players.
“This isn’t a revolution. It’s the beginning of a one-man show in the downstream sector,” warned another group member. “May Nigeria succeed, but the market must remain competitive.”
“Let’s ask him how he intends to cover the cost of transportation. Is it embedded in product pricing? Will it lead to a price increase?” asked Black Bishop
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