3 articles · Updated · msmeafricaonline.com · Jun 24
Summary
Dangote Petroleum Refinery said allegations that its fuel is exported to Lomé and re-imported into Nigeria are false and unsupported by trade data.
The refinery said the route makes no commercial sense because shipping products to Togo and back would add $80-$90 per metric tonne in logistics costs, while it offers no export discounts that could enable arbitrage.
Dangote added that its sales and tender contracts explicitly bar buyers from reselling or re-importing its products into Nigeria, saying such safeguards protect its domestic market position.
The denial comes as debate intensifies over Nigeria's fuel imports and pricing, even as domestic refining capacity rises, keeping focus on energy security and import substitution.
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Dangote Refinery and the Lomé Re-Importation Controversy: Economic and Policy Implications for Nigeria’s Fuel Market
Overview
Recent reports allege that Dangote Petroleum Refinery exports its refined products to Lomé, Togo, only for them to be re-imported into Nigeria at extra cost, a practice that could undermine local refining and raise prices for consumers. Dangote has strongly denied these claims, stating they contradict its trade economics, contractual arrangements, and commitment to reducing Nigeria’s import dependence. The refinery argues that such a scheme would harm local capacity and put pressure on foreign exchange. Meanwhile, Lomé’s role as a major trading hub adds complexity to regional fuel flows, highlighting ongoing tensions in Nigeria’s fuel market.