Petrol Marketers, Experts Reject World Bank’s Fuel Import Proposal for Nigeria

By Chisom Adaeze

Petroleum marketers and energy experts across Nigeria have strongly opposed a recent recommendation by the World Bank urging the country to liberalise fuel imports in order to increase competition and challenge domestic refining, particularly the operations of the Dangote Refinery.

The proposal, contained in the World Bank’s Nigeria Development Update released on April 7, suggested that Nigeria should prioritise fuel imports, claiming that imported petrol may be cheaper than locally refined products. The position immediately sparked widespread debate across the energy sector.

Although the report was later withdrawn and clarified by the World Bank, the controversy has continued to generate strong reactions from stakeholders in Nigeria’s downstream petroleum industry.

Policy Clarification Sparks Debate

Following backlash, the World Bank distanced itself from what it described as a blanket interpretation of its recommendation, stating that its position was part of broader economic reforms aimed at improving consumer welfare and market efficiency.

It later clarified that its approach focused on targeted support for vulnerable groups and strengthening Nigeria’s social safety nets rather than a full-scale push for fuel importation.

Despite this clarification, industry players say the initial suggestion has already raised concerns about Nigeria’s energy independence and long-term refining strategy.

Experts Warn Against Import Reliance

Energy analysts and policy experts have criticised the proposal, warning that increased dependence on imported fuel could undermine Nigeria’s refining ambitions, especially at a time of global energy instability linked to geopolitical tensions such as the ongoing Iran–United States–Israel conflict.

Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, described the recommendation as counterproductive, arguing that it ignores Nigeria’s evolving domestic refining landscape.

Similarly, the Crude Oil Refinery-Owners Association of Nigeria (CORAN), through spokesperson Eche Idoko, rejected the idea, insisting that imported fuel is not only economically disadvantageous but also of inconsistent quality compared to locally refined products.

Calls to Strengthen Local Refining

However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) offered a contrasting view, supporting the World Bank’s position on the grounds of market competitiveness. The association maintained that liberalisation could improve efficiency in the downstream sector.

In contrast, several other stakeholders have aligned with Nigeria’s emerging “Nigeria First” energy policy direction under President Bola Ahmed Tinubu, which prioritises local production and industrial self-sufficiency.

“Let Nigeria Be” — Experts Defend Domestic Refining

Dr. Tim Okon, Managing Partner of TENO Energy Resources Limited, criticised the World Bank’s influence on Nigeria’s policy direction, arguing that the country’s reliance on international borrowing has given external institutions undue leverage over domestic decisions.

He described the recommendation as unnecessary, insisting that Nigeria should focus on building a competitive and flexible local supply system rather than increasing imports.

According to him, a diversified pricing and fuel quality structure is more important than dependence on imported products, stressing that consumers require different fuel grades depending on vehicle performance needs.

IPMAN Backs Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) also rejected fuel import expansion, urging government and marketers to support local refining capacity, particularly the Dangote Refinery.

IPMAN President Abubakar Maigandi said Nigeria should prioritise domestic production instead of reverting to import dependence.

He stressed that strengthening local refineries would ensure stability in supply, create jobs, and support long-term economic growth.

“Any importation is not good for the country. The best solution is to refine our crude locally,” he said.

Maigandi also noted that Dangote Refinery’s products are already competitive in both pricing and quality, adding that increased patronage would encourage further investment in Nigeria’s refining sector.

Growing Energy Policy Divide

The controversy highlights ongoing tension between advocates of market liberalisation and proponents of domestic industrial protection, especially as Nigeria continues to reposition its energy sector.

With the Dangote Refinery now operational and additional modular refineries expected to come on stream, stakeholders say Nigeria stands at a critical crossroads in defining the future of its fuel supply chain.