Nigeria’s Dangote Refinery has denied allegations that its petroleum products are exported to Lomé, Togo, and later re-imported into Nigeria, describing the claims as false and lacking any commercial basis.
In a statement reported by the refinery said suggestions that marketers are importing Dangote-refined fuel through Togo contradict both trade realities and the company’s business objectives.
The company said it would normally not respond to what it called baseless allegations but decided to address the issue to set the record straight.
According to the refinery, facilitating imports that compete directly with its own products would make little commercial sense, particularly as it seeks to strengthen domestic refining and reduce Nigeria’s reliance on imported petroleum products.
Dangote Refinery also stated that its sales agreements and tender conditions expressly prohibit buyers from reselling or re-importing products into Nigeria.
Logistics Costs Make Trade Unattractive
The refinery argued that the economics of such an arrangement do not support the allegations.
It estimated that transporting petroleum products from the refinery to Lomé and then back into Nigeria would cost between $82 and $90 per metric tonne.
The company said it does not offer export discounts large enough to offset those costs or create an arbitrage opportunity between export and domestic markets.
According to the statement, there is no commercial incentive for a producer to incur additional shipping, storage, financing and handling expenses only for the products to return and compete in its largest market.
Detailed Records and Compliance Measures
The refinery said it maintains detailed records of all product sales, including lifting locations, nominated vessels, counterparties and declared destinations where applicable.
It added that claims it knowingly facilitates re-importation are inconsistent with both its contractual restrictions and compliance procedures.
Reaffirming its commitment to Nigeria’s energy security goals, the company said it remains focused on increasing domestic refining capacity and reducing dependence on imported fuel.
The refinery concluded that there is neither a strategic reason nor a commercial incentive to export products to neighbouring countries for subsequent re-importation into Nigeria.
