Dangote Refinery Dismisses Reports of Petrol Re-Importation Through Togo

June 24 () — The Dangote Petroleum Refinery has dismissed reports that its Premium Motor Spirit (PMS), popularly known as petrol, is exported to neighbouring Togo and subsequently re-imported into Nigeria, describing the claims as “unsubstantiated” and a “tissue of lies.”

In a statement issued on Tuesday, the refinery’s management said the allegations were unsupported by available trade flows, commercial logic and contractual arrangements, insisting that neither its business strategy nor economic realities support such a practice.

The company said it was compelled to respond despite its policy of ignoring what it described as baseless claims because of the need to set the record straight and preserve accurate public understanding of its operations.

“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,” the statement said.

According to the refinery, facilitating imports that directly compete with its own production would undermine one of its core objectives of strengthening its position as a leading supplier of petroleum products to the Nigerian market.

It disclosed that its sales contracts and tender terms expressly prohibit the resale or re-importation of productsThe into Nigeria by buyers.

The refinery further argued that the economics of the alleged trade route make little commercial sense.

It is estimated that transporting petroleum products from the refinery to Lomé and subsequently back into Nigeria would cost between $82 and $90 per metric tonne in logistics expenses alone.

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

The management added that the refinery does not offer export discounts substantial enough to offset such costs or create arbitrage opportunities 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 said.

Dangote Refinery also pointed to its product traceability systems and contractual safeguards as evidence against the allegations.

According to the company, comprehensive records are maintained for all product sales, including lifting locations, nominated vessels, counterparties and destination declarations where applicable.

It noted that any suggestion that it knowingly facilitates re-importation is inconsistent with the contractual restrictions imposed on buyers and the refinery’s established compliance procedures.

The refinery further maintained that the allegations contradict its publicly stated position on reducing Nigeria’s dependence on imported petroleum products.

It argued that increased fuel imports undermine local refining, place pressure on the country’s 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 statement added.

The company emphasised that there is neither a strategic rationale nor a commercial incentive for it to facilitate exports to neighbouring 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 management said.