Petroleum marketers and energy experts have rejected the World Bank’s recommendation urging Nigeria to open its borders for the importation of Premium Motor Spirit (PMS), popularly known as fuel or petrol, warning that such a move could undermine local refining capacity and hurt the economy.
NOP NIGERIA reports that the Washington-based institution had, in its Nigeria Development Update released on April 7, advised Africa’s most populous country to prioritise fuel imports, claiming that imported petrol was cheaper than domestically refined products.
The recommendation immediately triggered widespread debate across the oil and gas sector.
Amid mounting backlash, the World Bank subsequently deleted the report from its website and clarified that its position was not an outright endorsement of fuel importation.
The bank explained that its recommendation formed part of a broader reform strategy aimed at consumer protection and social welfare.
“In the case of Nigeria, the focus should be to provide targeted support to the most vulnerable people through their well-functioning social safety net system, and the World Bank Group stands ready to step up its existing support,” the bank stated last Thursday.
It also indicated a shift from its earlier stance on downstream oil sector liberalisation in Nigeria.
Experts Cite Global Supply Shocks
Energy experts faulted the initial recommendation, particularly against the backdrop of ongoing global supply disruptions linked to geopolitical tensions involving Iran, the United States, and Israel, which entered its seventh week on Tuesday.
They argued that encouraging importation at such a time exposes Nigeria to external shocks and volatility in international fuel markets.
The Centre for the Promotion of Private Enterprise, in a statement by its Chief Executive Officer, Dr Muda Yusuf, described the World Bank’s proposal as counterproductive.
Similarly, the spokesperson for the Crude Oil Refinery-Owners Association of Nigeria, Eche Idoko, maintained that imported fuel often falls short in quality when compared to locally refined petroleum products.
NOP NIGERIA reports that while most stakeholders opposed the recommendation, the Petroleum Products Retail Outlets Owners Association of Nigeria took a different stance.
In a statement by its National President, Billy Gillis-Harry, the association supported the World Bank’s position, arguing that opening up the downstream sector to imports would promote competition and efficiency.
However, this position appears to run contrary to the Federal Government’s ‘Nigeria First’ policy being championed by President Bola Ahmed Tinubu, which prioritises domestic production and consumption.
‘Why Should World Bank Dictate?’ – Okon
The Managing Partner of TENO Energy Resources Limited, Dr Tim Okon, while speaking with Daily Post, questioned the growing influence of the World Bank on Nigeria’s economic decisions.
“Why should the view of the World Bank be this important? It has become important because we have borrowed too much from them,” he said.
Okon argued that Nigeria’s dependence on external financing has given international institutions undue leverage over domestic policy direction.
He described the recommendation as “an unnecessary theory,” insisting that Nigeria should instead focus on building a flexible and competitive domestic fuel supply system.
Okon further explained that a sustainable fuel market requires the availability of different blends of petrol tailored to varying consumer needs.
“There are different blends of these products. If I have a 30-year-old Camry, do I really need super premium petrol? No,” he said.
He emphasised that regulatory authorities must ensure a range of fuel options is available rather than relying on imports.
The energy expert also noted that Nigeria’s reduced reliance on imported fuel has already disrupted established supply chains in Europe.
“Whatever the World Bank may think is simply because Nigeria was a major importer. Now that has changed, and the market has been disrupted,” he told journalists.
Also speaking, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, rejected calls for increased fuel importation, insisting that Nigeria must prioritise local refining.
“Well, in fact, you know Dangote has a refinery. And we rely on that particular refinery because that’s what we are looking for over the years. So, we are not telling anybody to go for importation,” he said.
Maigandi stressed that stakeholders should support the Dangote Refinery to encourage more investments in the sector.
“We are saying people should be patronising Dangote. Yes, so that other refineries that are coming can start doing business,” he said.
“Fuel import will not be good at all for the Nigerian economy.”
He warned that continued importation would undermine economic growth and discourage local investment.
The IPMAN president maintained that domestic refining remains the most sustainable solution for Nigeria, given its vast crude oil resources.
“Any importation is not good for the country. The best solution, since we have the raw material, is that we should start refining our raw material in our country,” he said.
Providing details on current market pricing, Maigandi disclosed that petrol from the Dangote Refinery sells for about ₦1,200 per litre.
He added that depot owners purchase the product at slightly higher rates ranging between ₦1,220 and ₦1,240 per litre.
“Dangote’s product is always cheaper than any product that you know, and it has a very good quality,” he stated.
Stakeholders insisted that strengthening local refining capacity would stabilise fuel supply, reduce dependence on imports, and shield Nigeria from global market shocks.
They urged the Federal Government to sustain policies that promote domestic production, protect investments in refineries, and ensure long-term energy security for the country.
