Dangote Refinery denies exported fuel is being smuggled back into Nigeria via Lomé
By Aboki Forex —
Dangote Petroleum Refinery has rejected claims that its exported petroleum products are being re-imported into Nigeria through the offshore ship-to-ship trading hub in Lomé, Togo.
In a statement on Tuesday, the refinery described the allegation as a “web of falsehoods”. It said the claim was not backed by trade data or commercial sense.
The denial follows reports that refined products shipped out by Dangote were returning to Nigeria through the STS hub in Lomé.
Four reasons Dangote says it is false
The refinery gave four reasons the allegation is baseless. These include its commercial goals, the trade economics, its compliance standards, and its long support for local refining.
Dangote said re-importing its own products would hurt its goal of becoming a top fuel supplier in Nigeria. It also argued the numbers do not add up.
“The estimated logistics cost of moving products from Dangote Refinery to Lomé and back into Nigeria is about $82 to $90 per metric ton. These extra costs would destroy margins and make the deal unattractive,” the company said.
It added that it does not offer export discounts large enough to cover those costs or create a profitable arbitrage between export and local markets.
“There is no commercial reason for a producer to pay extra shipping, storage, financing, and handling costs just to bring the product back to compete in its biggest and nearest market,” the statement said.
Dangote also noted that it has always pushed for less reliance on imported fuel. It said more imports hurt local refining, strain foreign exchange reserves, and weaken Nigeria’s industrial growth.