Dangote Refinery denies re-importing fuel from Togo

Dangote Petroleum Refinery has strongly refuted allegations that its refined petroleum products are being exported to Lomé, Togo, and subsequently re-imported into Nigeria. The refinery management described the claims, which have circulated online, as unfounded and unsupported by trade realities.

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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.

In a statement, the refinery's management addressed the "ill-motivated web of falsehoods," explaining that their policy is generally not to engage with baseless claims. However, they felt compelled to clarify the situation for the record. The company asserted that the alleged trade arrangement contradicts available trade flows, commercial logic, and its own business objectives.

A primary goal for Dangote Refinery is to solidify its position as a leading supplier within the Nigerian market. Facilitating imports that would directly compete with its own production would undermine this objective, the management stated. Furthermore, their sales contracts and tender terms explicitly prohibit the resale or re-importation of products back into Nigeria.

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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 refinery also highlighted the significant financial disincentive for such a trade. The estimated logistics costs for transporting products from Dangote Refinery to Lomé and then back to Nigeria would range from $80 to $90 per metric ton. These additional expenses would substantially erode profit margins, rendering the transactions commercially unattractive. The company does not offer export discounts that could offset these costs or create arbitrage opportunities, making the entire premise of re-importation commercially unviable.

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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.