Dangote Refinery denies claims of fuel round-tripping through Togo

The Dangote Refinery has dismissed reports alleging that Premium Motor Spirit (PMS), popularly known as petrol, is being exported from its facility to Togo and subsequently re-imported into Nigeria.

In a statement issued on Tuesday, the refinery described the allegations as false and economically illogical, insisting that such a practice would not make commercial sense for any producer.

The company said claims that its petroleum products are shipped to Lomé and later brought back into Nigeria fail to consider the significant costs associated with marine transportation, storage, financing, handling charges, and import-related expenses.

According to the refinery, any attempt to export fuel and then re-import it into Nigeria would attract additional logistics costs estimated at between $82 and $90 per metric tonne, making the arrangement commercially unviable.

“Simply put, there is no commercial incentive for a producer to incur extra shipping, storage, financing and handling costs only for the product to return and compete in its largest and closest market,” the company stated.

Dangote Refinery further explained that its export transactions are governed by strict contractual agreements that prohibit buyers from redirecting products back into the Nigerian market. The company noted that purchasers are required to declare final destinations for all cargoes, while product movements are monitored through established traceability and compliance systems.

It added that any buyer found violating the terms of sale by rerouting products into Nigeria would face sanctions, including contract termination and possible legal action.

The refinery maintained that facilitating the re-importation of its own products would run contrary to its business objectives and undermine efforts to strengthen domestic refining capacity.

Since commencing operations, the refinery has positioned itself as a key player in Nigeria’s drive toward energy self-sufficiency, aiming to reduce dependence on imported petroleum products and improve fuel supply across the country and the wider West African region.

The company reiterated its commitment to increasing local fuel supply, supporting price stability, and contributing to Nigeria’s long-term energy security, while urging the public to disregard what it described as unfounded reports about its export activities.