Dangote Refinery Reacts to Claims of Fuel Exports to Togo for Re-Importation Into Nigeria

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Dangote Refinery has firmly rejected allegations that petroleum products refined at its facility are exported to Lomé, Togo, and subsequently re-imported into Nigeria, describing the claims as false, misleading and economically unreasonable.

The company made its position known in a statement issued on Tuesday, where it dismissed the reports as part of what it termed a deliberate attempt to spread misinformation about its operations.

According to the refinery, the allegations lack factual backing and do not align with established commercial practices within the petroleum industry.

Refinery Breaks Silence on Allegations

Dangote Refinery stated that it generally avoids responding to unverified claims, preferring instead to focus on its mission of strengthening energy security in Nigeria and across Africa.

However, the company explained that it was compelled to address the issue because of the growing circulation of what it described as unfounded narratives.

“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 these ill-motivated webs of falsehoods for posterity,” the statement read.

‘Claim Defies Commercial Logic’

The refinery argued that the suggestion that its products are transported to neighbouring Togo and then brought back into Nigeria is not supported by trade realities or sound business reasoning.

According to the company, facilitating the importation of products that would directly compete with its own output would undermine its strategic business objectives.

Dangote Refinery stressed that one of its primary goals is to maintain and expand its role as a leading supplier of petroleum products within Nigeria.

“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.

Contracts Prohibit Re-Importation

The refinery further disclosed that its sales agreements and tender conditions contain clear provisions prohibiting buyers from reselling or re-importing its products into Nigeria.

It noted that these contractual safeguards are designed to prevent practices that could distort the market or undermine local refining efforts.

According to the company, any suggestion that it knowingly supports such transactions contradicts both its contractual framework and compliance procedures.

High Costs Make Practice Unattractive

Dangote Refinery also challenged the economic feasibility of the allegation, arguing that the logistics involved would make such transactions financially impractical.

The company estimated that transporting petroleum products from its facility to Lomé and then shipping them back into Nigeria would cost between $82 and $90 per metric tonne.

It noted that such additional expenses would significantly reduce profit margins and eliminate any potential commercial advantage.

“These additional costs would significantly erode margins and make such transactions commercially unattractive,” the refinery explained.

The company added that it does not offer export discounts large enough to offset transportation, storage, handling and financing expenses associated with such a process.

“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,” the statement added.

Traceability Systems Support Position

As part of its defence, the refinery highlighted its product monitoring and compliance systems, which it said provide comprehensive records of every transaction.

According to the company, it maintains detailed documentation covering product lifting locations, nominated vessels, counterparties and destination declarations where required.

The refinery said these controls make it possible to track product movements and ensure adherence to contractual obligations.

It maintained that allegations suggesting it is facilitating re-importation are inconsistent with its established operational procedures.

Commitment to Local Refining

Dangote Refinery reiterated its longstanding support for reducing Nigeria’s dependence on imported petroleum products and strengthening domestic refining capacity.

The company argued that increased fuel imports would undermine local production, place additional pressure on foreign exchange reserves and hinder industrial growth.

“Dangote Refinery has consistently advocated for eliminating Nigeria’s dependence on imported petroleum products.

“Increased importation undermines local refining, places pressure on foreign exchange reserves and weakens domestic industrial development,” the statement noted.

No Strategic or Commercial Benefit

Concluding its response, the refinery insisted that there is neither a strategic advantage nor a financial incentive for it to export products to neighbouring countries only for them to be re-imported into Nigeria.

The company maintained that the allegations are unsupported by market economics, contractual arrangements, compliance systems and its publicly stated commitment to promoting local refining.

“There is neither a strategic rationale nor a commercial incentive for Dangote Refinery to facilitate exports to neighbouring markets for subsequent re-importation into Nigeria.

“The allegation is not supported by the economics of the trade, the refinery’s contractual arrangements, its product traceability and compliance controls, or its longstanding position on strengthening domestic refining and eliminating dependence on imports,” the statement concluded.