The management of Dangote Petroleum Refinery has dismissed claims that petroleum products refined at its facility are exported to Lomé, Togo, and subsequently re-imported into Nigeria.
According to PUNCH Online, ABNTV reports that recent claims online have suggested that products produced at the Dangote refinery are exported to neighboring countries and then re-imported into Nigeria.
Reacting in a statement issued via its X handle on Tuesday, the refinery’s management described the allegation as unfounded and unsupported by trade realities.
The management stated that it was compelled to respond despite its policy of not engaging with what it termed “baseless and unsubstantiated claims.”
According to the management, the allegation does not align with available trade flows, commercial logic, or the company’s business objectives.
“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 read
The company explained that one of its key commercial objectives is to strengthen its position as a leading supplier of petroleum products in the Nigerian market, noting that facilitating imports that compete with its own production would be contrary to that goal.
“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 management stated.
The refinery further revealed that its sales contracts and tender terms expressly prohibit the resale or re-importation of products into Nigeria.
Addressing the economic viability of the alleged trade arrangement, Dangote Refinery said the logistics cost of transporting products from its facility to Lomé and then back into Nigeria would significantly increase expenses 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.
It added that the refinery does not offer export discounts that could offset such costs or create opportunities for arbitrage between export and domestic 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 noted.
