Dangote Refinery denies claims of fuel export, re-importation scheme

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Dangote Refinery

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Dangote Petroleum Refinery and Petrochemicals has dismissed allegations that its petroleum products are exported to Lomé, Togo, and subsequently re-imported into Nigeria, describing the claims as false, misleading and lacking any commercial or operational basis.

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In a statement issued by its management, the company expressed concern over the circulation of what it described as unfounded reports suggesting that products refined at its facility are being routed through neighbouring countries before finding their way back into the Nigerian market.

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While noting that it does not usually respond to baseless allegations, the refinery said it was compelled to address the issue in the interest of transparency and public understanding.

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According to the statement, the allegations are not supported by verifiable trade data, commercial logic or the operational realities of the refinery.

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The management reiterated that one of the refinery’s core objectives is to strengthen domestic fuel supply and serve as a leading provider of petroleum products in Nigeria, stressing that any arrangement that encourages imports to compete with its own products would run contrary to that mandate.

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It disclosed that all sales contracts and tender agreements signed with buyers expressly prohibit the resale or re-importation of Dangote Refinery products into Nigeria.

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The company further argued that the economics of such a trade route make no business sense, noting that the cost of transporting products from the refinery to Lomé and back into Nigeria is estimated at between $82 and $90 per metric tonne.

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According to the statement, such additional logistics expenses would significantly reduce profit margins and render the transaction commercially unviable.

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“Dangote Refinery does not provide export discounts sufficient to offset these costs or create arbitrage opportunities between export and domestic markets. Simply put, no rational producer would incur additional shipping, storage, financing and handling costs only for products to re-enter and compete in its primary market,” the company stated.

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Management also highlighted the refinery’s product traceability measures, which include comprehensive records of lifting points, nominated vessels, counterparties and declared destinations.

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It said these safeguards ensure transparency and accountability throughout the supply chain, making it possible to track the movement of products from the refinery to their final destinations.

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The company maintained that any suggestion that it facilitates or tolerates the re-importation of its products is inconsistent with its contractual obligations and compliance standards.

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Dangote Refinery further emphasized its long-standing advocacy for reducing Nigeria’s dependence on imported petroleum products, warning that any practice encouraging re-importation would undermine local refining efforts, place additional pressure on foreign exchange reserves and weaken industrial growth.

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The refinery insisted that there is no strategic, economic or operational justification for claims that it exports products for re-importation into Nigeria.

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It described the allegations as entirely unfounded and incapable of withstanding scrutiny when examined against established market realities, contractual frameworks and industry practices.

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Reaffirming its commitment to national development, the company said it remains focused on enhancing energy security, supporting local refining and contributing to Africa’s industrialisation agenda.

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