Amanze Chinonye
Dangote Petroleum Refinery has dismissed claims that its petroleum products are exported to neighbouring countries and subsequently re-imported into Nigeria, describing the allegation as unfounded, commercially illogical, and contrary to its operational objectives, Prime Business Africa reports.
In a statement issued on Wednesday, the refinery said it was compelled to respond despite its policy of not engaging with what it called baseless allegations, noting that the claims had gained traction in public discourse and required clarification.
The company said there is no verifiable trade data, commercial rationale, or operational evidence to support assertions that fuel produced at its facility is shipped to Lomé or other destinations only to be brought back into Nigeria.
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According to the refinery, such a practice would undermine its core mandate of strengthening domestic fuel supply and reducing Nigeria’s dependence on imported petroleum products.
The clarification comes amid ongoing debates over fuel pricing, supply chains, and the impact of local refining on Nigeria’s energy security, making the issue significant for marketers, consumers, and policymakers alike.
Dangote Refinery stressed that Nigeria remains its largest and most strategic market, arguing that it would make little business sense to incur additional logistics costs by exporting products only for them to return and compete in the domestic market.
It disclosed that all sales contracts and tender agreements expressly prohibit the resale or re-importation of its products into Nigeria, describing the provisions as critical safeguards for maintaining the integrity of its supply chain.
The company further argued that the economics of the alleged trade route are fundamentally flawed. It estimated that transporting petroleum products from the refinery to Lomé and back into Nigeria would attract logistics costs of between $82 and $90 per metric tonne, including expenses related to shipping, storage, insurance, financing, and handling.
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According to the refinery, such costs would significantly reduce margins and render the transaction commercially unviable.
“Dangote Refinery does not provide export discounts sufficient to offset these costs or create arbitrage opportunities between export and domestic markets,” the statement said.
It added that no rational producer would deliberately incur additional expenses for products to re-enter and compete in its primary market.
The refinery also highlighted its product traceability measures, saying it maintains detailed records of lifting points, nominated vessels, counterparties, and declared destinations, allowing full visibility across the supply chain.
It maintained that any suggestion that it facilitates or tolerates re-importation is inconsistent with its contractual obligations and compliance standards.
Reaffirming its commitment to local refining, the company said encouraging re-importation would weaken domestic refining efforts, place additional pressure on Nigeria’s foreign exchange reserves, and undermine industrial growth.
Dangote Refinery concluded that there is no strategic, economic, or operational basis for the allegation, insisting that the claim fails to withstand scrutiny when measured against market realities, contractual frameworks, and established industry practices.
The company said it remains focused on enhancing energy security, supporting local refining, and contributing to Nigeria’s industrial development.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
