The management of Dangote Petroleum Refinery has rejected allegations that its petroleum products refined at its facility are exported to Lomé, Togo, and later re-imported into Nigeria, describing the claims as “baseless,” “unsubstantiated,” and contrary to commercial logic.
The refinery’s management’s response comes amid growing public debate over fuel prices in Nigeria, even as tensions in the global oil market ease following a ceasefire agreement between the United States and Iran.
Since the outbreak of hostilities involving the United States, Israel, and Iran earlier this year, petrol prices in Nigeria have risen sharply. The escalation of the conflict, which heightened concerns about potential disruptions to global crude supplies through the Strait of Hormuz, pushed up international oil prices and prompted adjustments to domestic fuel prices.
As one of the country’s major suppliers of refined petroleum products, Dangote Refinery increased its ex-depot prices several times during the period.
Petrol, which sold for about ₦870 per litre before the crisis, climbed to nearly ₦1,500 per litre in some parts of the country. It currently sells for around ₦1,340 per liter at many filling stations in Abuja and other major cities.
Many Nigerians expected fuel prices to decline following the ceasefire announcement and the subsequent drop in crude oil prices. Brent crude, which surged to over $100/barrel during the conflict, has retreated significantly since the ceasefire was announced.
Reacting in a statement issued via its X handle on Tuesday, the refinery’s management described the allegation as unfounded and unsupported by trade realities.
The management stated that it was compelled to respond despite its policy of not engaging with what it termed “baseless and unsubstantiated claims.”
According to the management, the allegation does not align with available trade flows, commercial logic, or the company’s business objectives.
“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,” the statement read.
The company explained that one of its key commercial objectives is to strengthen its position as a leading supplier of petroleum products in the Nigerian market, noting that facilitating imports that compete with its own production would be contrary to that goal.
“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 management stated.
The refinery further revealed that its sales contracts and tender terms expressly prohibit the resale or re-importation of products into Nigeria.
Addressing the economic viability of the alleged trade arrangement, Dangote Refinery said the logistics cost of transporting products from its facility to Lomé and then back into Nigeria would significantly increase expenses and reduce profitability.
“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,” the statement said.
It added that the refinery does not offer export discounts that could offset such costs or create opportunities for arbitrage 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 noted.
The management also emphasised that the refinery maintains detailed records of all product sales, including lifting locations, nominated vessels, counterparties, and destination declarations where applicable.
“Dangote Refinery maintains comprehensive records of all product sales, including lifting locations, nominated vessels, counterparties, and destination declarations where applicable,” the statement said.
“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 maintained that it has consistently advocated reducing Nigeria’s dependence on imported petroleum products, arguing that increased imports undermine local refining, place pressure on foreign exchange reserves, and weaken 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,” the management stated.
The refinery concluded that there is neither a strategic nor commercial rationale for facilitating exports to neighboring countries 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.
Packaged by Lanre Olabisi
