Dangote Refinery rejects claims of fuel re-importation via Lomé, cites economic impracticality

By Ambrose Nnaji

Dangote Petroleum Refinery has denied allegations that petroleum products exported from its facility are being re-imported into Nigeria through the offshore ship-to-ship (STS) trading hub in Lomé, Togo.

In a statement, the refinery described the claims as a “web of falsehoods,” insisting that neither available trade data nor commercial realities support such assertions.

The clarification follows reports suggesting that refined petroleum products exported by the refinery were finding their way back into the Nigerian market through the Lomé offshore trading hub.

Rejecting the allegation, Dangote Refinery stated that such a practice would be inconsistent with its commercial objectives and economically irrational.

According to the company, facilitating the re-importation of its own products would undermine its strategic goal of consolidating its position as a major supplier of petroleum products within Nigeria.

The refinery further argued that the economics of the alleged trade route do not add up.

“The estimated logistics cost of moving products from Dangote Refinery to Lomé and subsequently back into Nigeria is approximately US$82–90 per metric ton. These additional costs would significantly erode margins and make such transactions commercially unattractive.

“Furthermore, Dangote Refinery does not offer export discounts of a magnitude that would offset these logistics costs or create a viable arbitrage opportunity 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,” the company stated.

Dangote also noted that it has consistently championed policies aimed at reducing Nigeria’s dependence on imported petroleum products, stressing that increased imports weaken local refining, exert pressure on foreign exchange reserves and hinder domestic industrial growth.

The controversy stems from comments reportedly made by Matthew Tracey-Cook of S&P Global Commodity Insights during a webinar organised by the Major Energy Marketers Association of Nigeria (MEMAN).

Tracey-Cook was quoted as saying that while Dangote Refinery had expanded supplies to the domestic market, some marketers were sourcing products through Lomé.

“Dangote volumes on a coastal basis do arrive back in Lagos from Lomé,” he reportedly stated.

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

In response, Dangote Refinery said it maintains detailed records of all product sales, including lifting points, nominated vessels, counterparties and destination declarations where applicable.

“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 statement said.

The dispute comes amid a sharp increase in Nigeria’s petrol imports despite growing domestic refining capacity.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that average daily imports of Premium Motor Spirit (PMS) rose by 59.5 per cent to 5.9 million litres in May 2026, compared to 3.7 million litres per day in April.

The figures indicate that marketers continued to supplement local supplies with imported fuel to meet market demand.

Nevertheless, domestic refineries remained the primary source of petrol supply during the period, contributing 41.5 million litres per day compared to imported volumes of 5.9 million litres per day.

As a result, locally refined products accounted for nearly 88 per cent of total petrol supplied in Nigeria in May, highlighting the increasing contribution of domestic refining to the country’s fuel market.