Company says allegations lack commercial logic, insists its contracts prohibit buyers from bringing exported products back into the Nigerian market…..
Dangote Petroleum Refinery has firmly rejected claims that its refined petroleum products are being shipped to Lomé, Togo, and later re-imported into Nigeria, describing the allegations as false, misleading, and inconsistent with commercial realities.
The company was reacting to reports suggesting that some petroleum marketers were sourcing Dangote-refined products through the offshore trading hub in Lomé before bringing them back into Nigeria for sale.
In a statement issued on Tuesday, the refinery dismissed the claims and argued that such an arrangement would run contrary to both its business strategy and Nigeria’s broader goal of reducing dependence on imported fuel.
While noting that it typically avoids responding to what it described as baseless allegations, the refinery said it was compelled to address the issue to prevent the spread of misinformation.
According to the company, there is no evidence from trade flows or market operations to support suggestions that its products are exported to neighbouring countries only to find their way back into Nigeria.
Dangote Refinery maintained that facilitating imports that directly compete with its own products would make little business sense for a company that has invested heavily in domestic refining capacity and seeks to dominate the local market.
The company further revealed that its sales agreements contain strict provisions preventing buyers from re-importing exported products into Nigeria.
According to the refinery, contractual terms and tender conditions expressly prohibit such practices, making claims of deliberate re-importation inconsistent with its operating procedures.
Addressing the economic aspect of the allegations, the refinery argued that the numbers simply do not add up.
It estimated that transporting petroleum products from its facility to Lomé and subsequently back into Nigeria would cost between $82 and $90 per metric tonne, creating significant additional expenses for traders.
The company said it does not offer export discounts substantial enough to offset those logistics costs or create an arbitrage opportunity that would make such transactions profitable.
“Simply put, there is no commercial incentive for a producer to incur extra shipping, storage, financing and handling costs only for the product to return and compete in its largest and closest market,” the statement noted.
The refinery also disclosed that it maintains comprehensive records of all transactions, including product lifting points, vessel nominations, counterparties, and destination declarations where required.
It argued that these compliance measures further undermine claims that it knowingly supports or facilitates the re-importation of its products.
Dangote Refinery reiterated that its core objective remains strengthening local refining capacity, enhancing energy security, and reducing Nigeria’s reliance on imported petroleum products.
The company stressed that encouraging fuel imports into Nigeria would contradict both its commercial interests and its publicly stated mission since commencing operations.
As debate continues within the downstream petroleum sector over fuel supply chains and market dynamics, the refinery insists there is neither a strategic reason nor an economic advantage in exporting products to neighbouring countries only for them to be brought back into Nigeria.
The statement marks one of the refinery’s strongest responses yet to claims surrounding the movement of its petroleum products across West Africa and underscores its determination to position itself as a key supplier to the Nigerian and African energy markets.
