Dangote Petroleum Refinery has denied reports claiming that its refined petroleum products are shipped to Lomé in Togo and later brought back into Nigeria for sale.
The company described the allegation as false, insisting that such a practice does not align with its business strategy or market objectives.
The clarification followed reports suggesting that some Nigerian fuel marketers were purchasing products refined by Dangote through the trading hub in Lomé before re-importing them into Nigeria.
In a statement released on Tuesday, the refinery said it usually avoids responding to unverified claims but decided to address the issue because of the growing circulation of the misleading information.
“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,” the statement reads.
“However, we have decided to clear the air on these ill-motivated web of falsehoods for posterity.
“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.”
Dangote Refinery explained that it was established to strengthen local fuel production and reduce Nigeria’s dependence on imported petroleum products.
As a result, it said supporting activities that increase imports into the country would go against its core objectives.
The refinery also stated that its agreements with buyers clearly prohibit the resale or re-importation of products into Nigeria.
Dangote Refinery further argued that the financial costs involved would make such transactions impractical.
According to the company, transporting fuel from the refinery to Lomé and then shipping it back into Nigeria would cost between $82 and $90 per metric tonne.
It added that it does not provide export discounts large enough to cover those expenses or make the arrangement profitable.
“The estimated logistics cost of moving products from Dangote Refinery to Lomé and subsequently back into Nigeria is approximately US$82-90 per metric ton.
“Furthermore, Dangote Refinery 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,” the refinery said.
“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.”
Dangote Refinery also noted that it maintains comprehensive records of all sales transactions, including information on buyers, vessels used for lifting products, loading points, and destination details where required.
The company said claims that it knowingly supports fuel re-importation are inconsistent with both its contractual conditions and internal compliance measures.
Reaffirming its commitment to increasing domestic refining capacity, the refinery said its long-term goal remains reducing fuel imports and improving energy security in Nigeria.
“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,” the statement added.
The refinery added that there is neither a business justification nor a strategic reason for exporting products to neighbouring countries only for them to be re-imported into Nigeria.
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