No commercial sense to export, re-import fuel to Nigeria — Dangote Refinery

Dangote Refinery has dismissed claims that it exports refined petroleum products to neighbouring countries only for the same products to be re-imported into Nigeria.

The refinery made the clarification in a statement posted on its official social media account on Wednesday.

The response follows reports alleging that the $20 billion refinery gives priority to export markets over domestic fuel supply.

However, the company maintained that the Nigerian market remains its primary focus.

According to the refinery, it would be economically illogical to incur additional shipping, storage, financing and handling costs to send products abroad and then bring them back to compete in its largest market.

Dangote Refinery further stated that exports only involve volumes that are not purchased by local marketers.

“Fuel markets are complex, but commercial logic is often simple.

“Recent claims have suggested that products produced locally are exported to neighbouring countries and then re-imported into Nigeria. Before accepting such claims, it is worth asking a few important questions:

“Does it make commercial sense to incur additional shipping, storage, financing and handling costs only for a product to return and compete in its largest and closest market?

“Who benefits financially from such a transaction?

“Where is the value created along the chain?

“Nigeria remains one of the largest fuel markets in Africa, and domestic demand remains the priority. Exports occur only for volumes not purchased by domestic marketers,” the company wrote on X.