The refinery dismisses allegations that its exported petroleum products are being re-imported into Nigeria through Togo, insisting the claims lack commercial and operational basis

Dangote Petroleum Refinery and Petrochemicals has firmly rejected claims that Nigerian fuel marketers are re-importing petroleum products exported from its facility through the Lomé trading hub in Togo, describing the allegations as misleading and unsupported by market realities.

The clarification was issued in Lagos on Wednesday after comments made by an S&P Global Energy official suggested that significant volumes of refined products originating from the Dangote refinery were finding their way back into Nigeria through cross-border trading arrangements.

In a detailed statement, the refinery’s management said the allegations do not align with available trade data, contractual obligations or the commercial objectives underpinning the multi-billion-dollar facility.

“Management states unequivocally that the allegation is not supported by verifiable trade data, commercial logic, or the operational realities of the Dangote refinery,” the company said.

The refinery stressed that one of its primary objectives is to strengthen domestic fuel supply and reduce Nigeria’s dependence on imported petroleum products.

According to the company, any arrangement that allows imported fuel to compete directly with locally refined products would undermine that mission.

“A core mandate of the refinery is to strengthen domestic supply and remain a leading provider of petroleum products in Nigeria. Any practice that enables imports to compete directly with its own production clearly contradicts this objective,” the statement added.

The controversy followed remarks by S&P Global Energy analyst Matthew Tracey-Cook during a webinar organised by the Major Energies Marketers Association of Nigeria, where he suggested that petroleum products exported from the refinery to Lomé were being re-imported into Nigeria by fuel marketers.

Tracey-Cook stated that between March and May, a substantial proportion of imported fuel volumes entering Nigeria had originally come from the Dangote refinery.

“For several months, from March until May, we saw well over 70 to 80 per cent of the volumes that were imported into Nigeria actually originated from Dangote; from their coastal Dangote volumes which were re-imported,” he said.

Although the analyst did not suggest that the refinery itself was involved in the alleged transactions, the comments reignited debate about fuel pricing, supply chains and trading patterns within West Africa’s petroleum market.

Responding directly to the claims, Dangote Petroleum Refinery argued that the economics of such transactions make little commercial sense.

According to the company, logistics expenses associated with transporting products from the refinery to Lomé and then shipping them back into Nigeria would add between $82 and $90 per metric tonne to overall costs.

The refinery maintained that these expenses would significantly reduce profit margins and render such trade commercially unattractive.

“Dangote refinery does not provide export discounts sufficient to offset these costs or create arbitrage opportunities between export and domestic markets,” the company stated.

“Simply put, no rational producer would incur additional shipping, storage, financing, and handling costs only for products to re-enter and compete in its primary market.”

The company further revealed that its sales contracts and tender agreements explicitly prohibit the resale or re-importation of products into Nigeria.

Management said robust compliance procedures and product-tracking systems are embedded throughout its operations to ensure transparency across the supply chain.

The refinery explained that it maintains detailed records covering loading points, vessels, counterparties and declared destinations for every shipment.

“These measures ensure full visibility and accountability across the supply chain,” the statement noted.

Dangote also argued that encouraging re-importation would contradict its longstanding advocacy for local refining and energy self-sufficiency.

The refinery said such a practice would undermine national industrialisation efforts, increase pressure on foreign exchange reserves and weaken the gains being pursued through domestic refining capacity.

“Management reiterates that there is no strategic, economic, or operational basis for the claim that Dangote refinery exports products for re-importation into Nigeria,” the company said.

“The allegation is entirely unfounded and does not withstand scrutiny when measured against market logic, contractual frameworks, and industry practices.”

The debate is not entirely new. In November 2025, some petroleum marketers claimed that the refinery sold petrol to international traders at prices significantly lower than those offered to domestic buyers.

Officials of the Depot and Petroleum Products Marketers Association of Nigeria and the Petroleum Products Retail Outlet Owners Association of Nigeria alleged at the time that some traders could purchase Dangote products abroad and still profit by bringing them back into Nigeria.

The refinery subsequently rejected those claims, insisting that its pricing structure did not favour foreign traders over local marketers.

The latest dispute comes amid broader tensions within Nigeria’s downstream petroleum sector, where stakeholders continue to debate fuel importation, market competition and the future role of local refining.

The issue is particularly significant because the Dangote refinery, Africa’s largest single-train refinery, has consistently advocated policies aimed at reducing dependence on imported fuel and strengthening domestic production capacity.

The company is also pursuing legal action relating to fuel importation policies, underscoring its determination to establish local refining as the dominant source of petroleum products in Nigeria.

As discussions continue, the disagreement highlights the complex dynamics of regional fuel trading and the growing scrutiny surrounding petroleum supply chains in West Africa’s evolving energy market.