Dangote refinery refutes Togo fuel re-import claims

The management of Dangote Petroleum Refinery has dismissed allegations that petroleum products refined at its facility are exported to Lomé, Togo, and subsequently re-imported into Nigeria.

The refinery was reacting to claims circulating online suggesting that its products are shipped to neighbouring countries before finding their way back into the Nigerian market.

In a statement issued on its official X account on Tuesday, the company described the allegations as false, misleading and inconsistent with commercial realities.

Although it noted that it typically refrains from responding to what it called baseless claims, the refinery said it was compelled to address the issue to set the record straight.

“As a matter of policy, we do not respond to baseless and unsubstantiated claims, given our focus on ensuring energy security in Nigeria and across Africa. However, we have decided to clear the air on this web of falsehoods,” the statement said.

The refinery explained that one of its core business objectives is to consolidate its position as a leading supplier of petroleum products within Nigeria, making it illogical to support imports that would compete with its own output.

According to the company, facilitating the re-importation of its products would run contrary to its commercial interests and long-term strategy.

The management also disclosed that its sales agreements and tender conditions expressly prohibit buyers from reselling or re-importing products into Nigeria.

Addressing the economic aspect of the allegations, the refinery stated that transporting petroleum products from its facility to Lomé and then back into Nigeria would incur logistics costs of between $80 and $90 per metric tonne, making such transactions commercially unattractive.

“These additional expenses would significantly reduce profit margins and provide no economic advantage,” the company said.

It further noted that it does not offer export discounts capable of offsetting such costs or creating opportunities for arbitrage between export and domestic markets.

The refinery argued that there is no business rationale for incurring extra shipping, storage, financing and handling costs only for products to return and compete in Nigeria, which remains its largest and closest market.

The company also highlighted its compliance and monitoring systems, stating that it maintains detailed records of all product sales, including lifting points, vessels, counterparties and declared destinations where applicable.

According to the management, any suggestion that it knowingly facilitates re-importation is inconsistent with its contractual obligations and established compliance procedures.

Dangote Refinery reiterated its long-standing position in support of local refining, stressing that increased dependence on imported petroleum products undermines domestic production, places pressure on foreign exchange reserves and weakens industrial growth.

“It would be inconsistent with both our commercial interests and our publicly stated commitment to strengthening domestic refining to encourage practices that increase fuel imports into Nigeria,” the statement added.

The refinery concluded that there is neither a strategic nor economic justification for exporting products to neighbouring countries for subsequent re-importation into Nigeria, maintaining that the claims are unsupported by trade economics, contractual arrangements or operational realities.