By Mary Izuaka

 

Dangote Petroleum Refinery has rejected allegations that its petroleum products are exported to Lomé, Togo, and later re-imported into Nigeria.

A statement issued by its management on Tuesday made this known in reaction to a report alleging that Nigerian fuel marketers are increasingly re-importing Dangote-produced petroleum products through the offshore ship-to-ship trading hub in Lomé, Togo.

The company described the claims as “baseless,” “unsubstantiated”, and contrary to commercial logic.

In its statement titled “Response to Unsubstantiated Claims and Tissue of Lies,” the refinery said it typically refrains from responding to unfounded allegations but decided to address the claims in the interest of setting the record straight.

“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.

“It contradicts Dangote Refinery’s 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,” the statement said.

The refinery said facilitating imports that would compete directly with its own production would be inconsistent with its objective of maintaining and strengthening its position as a leading supplier of petroleum products in Nigeria

“Accordingly, Dangote Refinery’s sales contracts and tender terms expressly prohibit the resale or re-importation of products into Nigeria.”

The company said the economics do not support such a trade.

It explained that the estimated logistics cost of moving products from Dangote Refinery to Lomé and subsequently back into Nigeria is approximately $82-90 per metric ton.

These additional costs, the company said, would significantly erode margins and make such transactions commercially unattractive.

The refinery noted that it 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.

“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 added.

Dangote Refinery said it maintains comprehensive records of all product sales, including lifting locations, nominated vessels, counterparties, and destination declarations where applicable.

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“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.”

The company said it has consistently advocated for eliminating Nigeria’s dependence on imported petroleum products, noting that increased importation undermines local refining, places pressure on foreign exchange reserves, and weakens domestic industrial development.

“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.

“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 company said.