DangoteRefinery says alleged fuel re-importation lacks commercial logic.

Dangote Refinery has denied claims that its refined petroleum products are exported to Lomé, Togo, and later re-imported into Nigeria, describing the allegations as false and commercially illogical.

The refinery was reacting to reports alleging that some Nigerian marketers were importing Dangote-produced fuel through the offshore trading hub in Lomé before bringing the products back into the country.

In a statement issued on Tuesday, the company said the claims contradict its business model and commitment to reducing Nigeria’s dependence on imported petroleum products.

“The allegation that products produced by Dangote Refinery are exported to Lomé and subsequently re-imported into Nigeria is not supported by either available trade flows or commercial logic,” the refinery said.

The company added that facilitating imports that compete directly with its own products would be inconsistent with its commercial interests as a major supplier to the Nigerian market.

According to the refinery, its sales agreements and tender terms expressly prohibit buyers from reselling or re-importing products into Nigeria.

Dangote Refinery cites logistics costs, contract restrictions

The Refinery also argued that the economics of such transactions make them unattractive.

The company said transporting products from the refinery to Lomé and back into Nigeria would cost between $82 and $90 per metric tonne.

“The estimated logistics cost of moving products from Dangote Refinery to Lomé and subsequently back into Nigeria is approximately US$82-90 per metric ton,” the statement said.

“Furthermore, Dangote Refinery does not offer export discounts of a magnitude that would offset these logistics costs or create a viable arbitrage opportunity between export and domestic markets.”

The refinery said there is no commercial incentive for a producer to incur additional shipping, storage, financing, and handling costs only for the products to return and compete in its primary market.

It added that it maintains detailed records of product sales, including lifting locations, nominated vessels, counterparties, and destination declarations where applicable.

The company said suggestions that it knowingly facilitates re-importation are inconsistent with both its contractual restrictions on buyers and its compliance procedures.

Dangote Refinery reiterates commitment to reducing fuel imports

Dangote Refinery reiterated its commitment to strengthening domestic refining capacity and reducing fuel imports into Nigeria.

“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 company said.

The refinery maintained that there is neither a strategic rationale nor a commercial incentive to export products to neighbouring countries for subsequent re-importation into Nigeria.

It added that its operations remain aligned with the broader objective of reducing fuel imports, improving local supply, and supporting energy security in Nigeria and across Africa.

Background

The controversy comes amid ongoing debates about fuel supply, pricing, and competition in Nigeria’s downstream petroleum sector.

Since commencing production, Dangote Refinery has positioned itself as a key player in Nigeria’s efforts to reduce reliance on imported refined petroleum products. The facility, located in Lagos, is regarded as Africa’s largest single-train refinery and has increasingly supplied petrol, diesel, aviation fuel, and other refined products to the domestic market.

The refinery has repeatedly argued that local refining capacity is critical to improving energy security, reducing foreign exchange pressures, and lowering the country’s dependence on imported fuel.

In recent months, discussions around fuel imports and product sourcing have intensified following changes in market dynamics after the removal of fuel subsidies and the deregulation of the downstream sector.

The latest allegation suggested that some marketers were finding it commercially viable to obtain Dangote-refined products outside Nigeria before reintroducing them into the domestic market. The refinery, however, insists that neither trade flows nor pricing structures support such claims.