Dangote Refinery Denies Shipping Fuel To Togo For Re-Import

Dangote Refinery has refuted claims that its petroleum products are exported to Lomé, Togo, and subsequently re-imported into Nigeria.

Naija News reports that the refinery dismissed the claims in a statement on Tuesday.

It described the claims as unsubstantiated and commercially illogical.

The refinery said it was compelled to respond to what it described as an “ill-motivated web of falsehoods” despite its longstanding policy of not engaging with baseless allegations.

“As a matter of policy, we do not respond to baseless and unsubstantiated claims, given our current determination and focus in ensuring energy security in Nigeria and Africa as a whole. However, we have decided to clear the air on these ill motivated web of falsehoods for posterity,” the company said.

The refinery maintained that the allegation that products refined at its facility are shipped to Lomé and later brought back into Nigeria “is not supported by either available trade flows or commercial logic.”

According to the company, facilitating imports that directly compete with its own production would run contrary to its core commercial objectives.

“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 statement said.

The company added that its sales contracts and tender terms expressly prohibit the resale or re-importation of products into Nigeria.

Dangote Refinery also argued that the economics of such a transaction do not support the allegation. It is estimated that transporting petroleum products from its refinery to Lomé and then back into Nigeria would cost between $82 and $90 per metric tonne.

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

It further noted that it does not offer export discounts large enough to offset logistics expenses or to create any profitable arbitrage opportunity 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,” the statement added.

The refinery also pointed to its product traceability systems and contractual controls as further evidence against the allegations.

According to the company, it 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,” it said.

The company further argued that the allegations conflict with its longstanding public advocacy for reducing Nigeria’s dependence on imported petroleum products.

“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 said.

The refinery concluded that there is neither a strategic nor a commercial rationale for facilitating exports to neighbouring countries for subsequent re-importation into Nigeria.

“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 long standing position on strengthening domestic refining and eliminating dependence on imports,” the statement added.