By Francis Ajuonuma
The management of Dangote Petroleum Refinery and Petrochemicals has rejected claims that its petroleum products are exported to Lomé, Togo, and subsequently re-imported into Nigeria, describing the allegation as false, misleading and lacking any commercial or operational basis.
The company said the reports currently circulating in some quarters do not align with trade realities, contractual arrangements or the refinery’s strategic objective of strengthening Nigeria’s domestic fuel supply.
In a statement issued on Tuesday, the refinery said it was compelled to respond despite its longstanding policy of avoiding engagement with unsubstantiated claims, stressing that public interest and transparency made it necessary to set the record straight.
Management stated that the allegation fails every test of commercial logic and is unsupported by verifiable trade data.
“The allegation is not supported by verifiable trade data, commercial logic, or the operational realities of Dangote Refinery,” the company said.
According to the refinery, its primary mandate is to supply petroleum products to the Nigerian market and reduce the country’s dependence on imported refined products.
It argued that any arrangement that allows imported products to compete with fuel produced locally by the refinery would run contrary to its core business objectives and investment strategy.
“A core mandate of the refinery is to strengthen domestic supply and remain a leading provider of petroleum products in Nigeria. Any practice that enables imports to compete directly with our own production clearly contradicts this objective,” the statement noted.
The company disclosed that all product sales agreements and tender contracts contain explicit provisions prohibiting the resale or re-importation of Dangote Refinery products into Nigeria.
It further explained that the economics of the alleged trade route make such a transaction commercially unattractive and practically unsustainable.
According to the refinery, transporting petroleum products from its facilities to Lomé and then shipping them back to Nigeria would incur additional logistics costs estimated at $82- $90 per metric tonne.
These costs, it said, would substantially reduce profit margins and eliminate any potential arbitrage opportunity.
“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.
The refinery also highlighted the robust compliance and monitoring systems built into its operations, noting that all product movements are subject to strict traceability protocols.
Management said detailed records are maintained that cover lifting points, vessels, counterparties, and declared destinations, ensuring visibility and accountability throughout the supply chain.
The company insisted that suggestions that it facilitates or condones re-importation are inconsistent with its contractual safeguards and compliance framework.
“Any claim suggesting that the refinery facilitates or tolerates re-importation is inconsistent with its contractual safeguards and established compliance standards,” it said.
Dangote Refinery further stressed that it has consistently championed policies to reduce Nigeria’s reliance on imported fuel and conserve scarce foreign exchange.
According to the company, encouraging re-importation would undermine local refining capacity, weaken industrial growth and frustrate efforts to achieve energy self-sufficiency.
“There is no strategic, economic or operational basis for the claim that Dangote Refinery exports products for re-importation into Nigeria. The allegation is entirely unfounded and does not withstand scrutiny when measured against market logic, contractual frameworks and industry practices,” the statement added.
The refinery reaffirmed its commitment to enhancing Nigeria’s energy security, supporting local refining and driving industrial development across Africa.
“Dangote Refinery remains focused on its mission to enhance energy security, support local refining, and contribute meaningfully to Africa’s industrial development,” the statement concluded.
