A prominent stakeholder in the oil and gas industry and National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Joseph Obele, has expressed strong concerns over the proposed move by the Dangote Group to distribute Liquefied Petroleum Gas (LPG) directly to homes nationwide.
Speaking to our correspondent, Dr. Obele warned that the strategy, though innovative, could pose a significant threat to thousands of jobs already created by the domestic gas retail sector and may heighten security concerns in the country.
“Regarding Dangote’s entrance into the domestic gas distribution market, many Nigerians are already lamenting. In the oil and gas sector, the sale of LPG to local consumers is one of the highest employers of labour.
“There is no street in Nigeria where you do not find at least three or four shops involved in LPG retailing.”
He explained that the Dangote Group’s plan to deploy mobile filling trucks that will distribute gas directly to homes across all 774 local government areas would disrupt the livelihood of small-scale gas retailers nationwide.
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“It’s not wrong to pursue forward integration as a business strategy, but considering the underdeveloped nature of Nigeria’s economy and the current unemployment rate, this move will have serious implications. With his financial capacity, Dangote should carefully evaluate the fate of the thousands of micro-distributors who currently serve as the backbone of LPG access in Nigeria.”
He added that the initiative, while aimed at improving efficiency, could endanger existing small businesses and worsen unemployment and insecurity.
“Nigerians foresee the danger and are deeply worried about the commencement of this model of gas distribution. It is not just a business move, it is a serious threat to livelihoods.”
