World Bank fuel import proposal sparks backlash from Nigerian marketers, expert

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Petroleum marketers and energy experts in Nigeria have pushed back against recent recommendations by the World Bank urging the country to open its borders to increased imports of Premium Motor Spirit (PMS), commonly known as petrol.

The recommendation, contained in the bank’s Nigeria Development Update released on April 7, suggested that fuel imports could offer a cheaper alternative to locally refined products. However, the proposal quickly generated widespread debate across Nigeria’s energy sector.

In a subsequent clarification, the World Bank removed the report from its website, stating that its position was not a blanket endorsement of fuel importation but part of a broader reform strategy aimed at consumer protection and targeted social support.

Despite this clarification, several stakeholders have criticised the initial recommendation, especially against the backdrop of ongoing global supply disruptions linked to geopolitical tensions involving Iran, the United States, and Israel.

The Centre for the Promotion of Private Enterprise, through its Chief Executive Officer, Muda Yusuf, described the proposal as counterproductive, warning it could undermine Nigeria’s long-term economic interests.

Similarly, the spokesperson for the Crude Oil Refinery-Owners Association of Nigeria, Eche Idoko, argued that imported fuel may be of inferior quality compared to locally refined products.

In contrast, the Petroleum Products Retail Outlets Owners Association of Nigeria, led by its National President Billy Gillis-Harry, expressed support for the World Bank’s position, citing the need for increased competition in the downstream petroleum sector.

However, this stance appears to run counter to the “Nigeria First” policy championed by President Bola Ahmed Tinubu, which prioritises domestic production and economic self-reliance.

Energy expert and Managing Partner of TENO Energy Resources Limited, Tim Okon, questioned the influence of the World Bank on Nigeria’s policy direction, attributing it to the country’s dependence on external borrowing.

He described the recommendation as “unnecessary,” urging Nigeria to focus instead on building a flexible and competitive domestic fuel supply system. Okon also advocated for the availability of multiple fuel grades to cater to different categories of consumers.

Meanwhile, the President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, dismissed calls for increased fuel imports, insisting that Nigeria should prioritise local refining.

He highlighted the role of the Dangote Refinery as a major step toward achieving energy self-sufficiency, urging marketers and the government to support domestic production.

According to Maigandi, reliance on imports would hinder economic growth, while strengthening local refining capacity would stabilise supply and promote national development.

He added that petrol from the Dangote Refinery currently sells at about ₦1,200 per litre, with depot prices ranging between ₦1,220 and ₦1,240, noting that the product is both competitively priced and of high quality.

Stakeholders widely agree that boosting domestic refining remains the most sustainable path for Nigeria, given its abundant crude oil resources.