Dangote Refinery Rejects Allegations of Fuel Exports Being Routed Back Into Nigeria
Dangote Petroleum Refinery has denied reports suggesting that refined petroleum products from its facility are shipped to Lomé, Togo, and later brought back into Nigeria for sale.
The company responded to the claims in a statement shared on its official social media platform on Tuesday, describing the allegations as misleading and inconsistent with both commercial realities and its business strategy.
According to the refinery, while it generally avoids responding to what it considers unverified reports, it chose to address the issue to prevent the spread of misinformation.
The company stressed that enabling the importation of products that directly compete with its own output would undermine its objective of becoming a dominant supplier of petroleum products in the Nigerian market.
Dangote Refinery explained that its export agreements contain provisions that prohibit buyers from reselling or re-importing products into Nigeria. It noted that such restrictions are part of measures designed to protect its market position and ensure compliance with established trade practices.
The refinery also questioned the economic logic behind the claims, stating that transporting fuel from Nigeria to Togo and then back into the country would add substantial logistics expenses, making the arrangement financially unattractive.
It estimated that the additional costs associated with shipping, storage, financing and handling could amount to between $80 and $90 per metric ton, significantly reducing any potential profit margin.
Furthermore, the company said it does not offer export pricing incentives that could encourage arbitrage opportunities between domestic and foreign markets.
Dangote Refinery maintained that all transactions are carefully documented, with records covering buyers, vessels, loading points and declared destinations. It argued that these procedures make it difficult for any unauthorized re-importation scheme to occur without detection.
The company reiterated its long-standing position in support of local refining and reduced dependence on imported petroleum products, noting that excessive imports place pressure on foreign exchange reserves and hinder industrial growth.
According to the refinery, there is neither a commercial advantage nor a strategic reason to export products to neighbouring countries only for them to return and compete in Nigeria’s market.
It concluded that the allegations are not supported by market economics, contractual arrangements, product-tracking systems or the company’s commitment to strengthening domestic refining capacity and reducing fuel imports.
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