The Management of Dangote Petroleum Refinery and Petrochemicals has noted with concern the circulation of unfounded and misleading claims suggesting that its petroleum products are exported to Lomé and subsequently re-imported into Nigeria.
The company made the clarification in a statement obtained by Vital News on Wednesday.
It stated that, as a matter of policy, the Company does not ordinarily engage with baseless and unsubstantiated allegations.
“However, in the interest of transparency and to set the record straight, Management considers it necessary to address this deliberate misinformation.
“Management states unequivocally that the allegation is not supported by verifiable trade data, commercial logic, or the operational realities of Dangote Refinery,” the statement said.
A core mandate of the refinery, according to the statement 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.
“Accordingly, Management confirms that all sales contracts and tender agreements expressly prohibit the resale or re-importation of Dangote Refinery products into Nigeria.
“Furthermore, Management emphasises that the economics of the purported trade route are fundamentally flawed.
“Estimated logistics costs for transporting products from the refinery to Lomé and back into Nigeria range between US$82–90 per metric ton.
“Such additional costs would significantly erode 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.
“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 refinery explained.
Management also highlighted that the refinery maintains stringent product traceability protocols, including detailed records of lifting points, nominated vessels, counterparties, and declared destinations.
“These measures ensure full visibility and accountability across the supply chain,” it stated.
The statement insisted that any “claim suggesting that the refinery facilitates or tolerates re-importation is inconsistent with its contractual safeguards and established compliance standards.
“The refinery has consistently advocated for reducing Nigeria’s dependence on imported petroleum products. Management underscores that encouraging or enabling re-importation would undermine local refining efforts, strain foreign exchange reserves, and weaken national industrial growth, positions that are contrary to its core objectives.
“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 allegation is entirely unfounded and does not withstand scrutiny when measured against market logic, contractual frameworks, and industry practices.
“Dangote Refinery remains focused on its mission to enhance energy security, support local refining, and contribute meaningfully to Africa’s industrial development,” the statement concluded.
(vitalnewsngr.com)
