By Katherine Abayomi
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised serious concerns over the Dangote Group’s proposed plan to distribute Liquefied Petroleum Gas (LPG) directly to households across the country.
Speaking to journalists, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, described the plan as a potential threat to the jobs of thousands of Nigerians who rely on small-scale LPG retailing for survival. He warned that the proposed model, which involves deploying mobile filling trucks to distribute gas directly to homes in all 774 local government areas, could destabilize the existing retail network and heighten security concerns.
“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,” Obele said.
While acknowledging that the move may be seen as forward integration and innovation, he cautioned that Nigeria’s fragile economy and high unemployment rate make such a shift potentially harmful to small businesses and national security.
“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 said.
Obele further warned that the initiative, while intended to boost distribution efficiency, may inadvertently eliminate countless micro enterprises, deepen job losses, and escalate social unrest.
“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,” he concluded.
