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 described the claims as false, unfounded and inconsistent with commercial realities, insisting that such an arrangement would be contrary to its business objectives and economic interests.
In a statement issued on its official X account on Tuesday, the company said it was compelled to respond despite its longstanding policy of avoiding engagement with what it termed baseless and unsubstantiated allegations.
According to the refinery, recent reports circulating online suggested that products refined at its facility were being shipped to neighbouring countries before finding their way back into the Nigerian market.
“As a matter of policy, we do not respond to baseless and unsubstantiated claims, given our current determination and focus on ensuring energy security in Nigeria and Africa as a whole.
“However, we have decided to clear the air on this ill-motivated web of falsehoods for posterity,” the statement said.
The management explained that one of its primary commercial objectives is to strengthen its position as a leading supplier of petroleum products within Nigeria, making it illogical to facilitate imports that would compete directly with its own products.
“A key objective of Dangote Refinery is to maintain and strengthen its position as a leading supplier of petroleum products to the Nigerian market. Facilitating imports that compete directly with our own production would be inconsistent with this objective,” the company stated.
The refinery further disclosed that its sales agreements and tender conditions expressly prohibit buyers from re-importing products into Nigeria.
It argued that the economics of the alleged arrangement make no commercial sense, noting that transporting products from the refinery to Lomé and back into Nigeria would significantly increase operational costs and reduce profitability.
“The estimated logistics cost of moving products from Dangote Refinery to Lomé and subsequently back into Nigeria is approximately $80–90 per metric ton. These additional costs would significantly erode margins and make such transactions commercially unattractive,” the statement said.
The company added that it does not provide export discounts that could create opportunities for arbitrage between domestic and export markets.
“Simply put, there is no evident commercial incentive for a producer to incur additional shipping, storage, financing and handling costs only for the product to return and compete in its largest and closest market,” it added.
The refinery also emphasised that it maintains comprehensive records of all product transactions, including lifting points, nominated vessels, counterparties and declared destinations where applicable.
“Dangote Refinery maintains comprehensive records of all product sales, including lifting locations, nominated vessels, counterparties and destination declarations where applicable.
“Any suggestion that the refinery is knowingly facilitating re-importation is inconsistent with the contractual restrictions imposed on buyers and the refinery’s established compliance procedures,” the company stated.
Reaffirming its position on domestic refining, the management said it has consistently advocated reducing Nigeria’s dependence on imported petroleum products, arguing that excessive imports undermine local refining capacity, weaken industrial growth and put pressure on the country’s foreign exchange reserves.
“It would therefore be inconsistent with both the refinery’s commercial interests and its publicly stated position to support or encourage practices that increase imports into Nigeria,” the statement noted.
The refinery concluded that there is neither a strategic nor economic justification for exporting products to neighbouring countries for subsequent re-importation into Nigeria.
According to the company, the allegations are not supported by trade economics, contractual arrangements, product traceability systems or its long-standing commitment to strengthening domestic refining and achieving energy security.
