Marketers, experts reject World Bank’s call for fuel import liberalisation, back local refining push

Petroleum marketers and energy experts have pushed back against recommendations by the World Bank urging Nigeria to further liberalise fuel imports, insisting that the country should instead strengthen domestic refining capacity, particularly the operations of the Dangote Refinery.

The controversy follows the World Bank’s Nigeria Development Update released on April 7, which suggested that Nigeria should prioritise fuel imports, arguing that imported petrol could be cheaper than locally refined products. The report sparked immediate backlash from stakeholders in the downstream petroleum sector.

Although the World Bank later clarified and removed the report from its website, stating that its recommendations were not a blanket endorsement of fuel importation but part of broader reform and consumer protection discussions, the initial position has continued to generate debate within Nigeria’s energy industry.

In its clarification, the bank stressed that the focus of its broader policy advice was to support vulnerable populations through existing social safety nets while encouraging efficiency in the downstream sector.

However, energy stakeholders and industry groups remain divided over the issue.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the recommendation as counterproductive, warning that increased imports could undermine domestic investment and weaken Nigeria’s refining ambitions.

Similarly, the spokesperson of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko, faulted the proposal, arguing that imported petroleum products may not offer superior quality advantages and could discourage local production.

On the other hand, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed support for the World Bank’s position, arguing that increased competition through imports could improve efficiency and pricing in the downstream sector.

The stance contrasts with President Bola Tinubu’s “Nigeria First” policy direction, which emphasises local production and value addition.

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Speaking in separate interviews, energy experts and marketers also weighed in strongly in favour of domestic refining. Managing Partner of TENO Energy Resources Limited, Dr. Tim Okon, questioned the relevance of the World Bank’s recommendation, arguing that Nigeria’s priority should be building a flexible and competitive local supply system rather than relying on imports.

Okon said Nigeria’s relationship with global financial institutions has often influenced policy direction due to the country’s dependence on external borrowing.

“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, describing the recommendation as “theoretical” and disconnected from Nigeria’s long-term economic interests.

He added that a diversified domestic fuel system with multiple product grades would better serve consumers, while noting that global fuel market shifts have already disrupted traditional import patterns.

President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, also rejected any push for increased fuel importation, saying Nigeria should focus on strengthening local refining capacity.

Maigandi stressed that marketers are now increasingly relying on domestic supply, particularly from the Dangote Refinery, which he described as central to Nigeria’s energy transition.

“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,” he said, adding that import dependence would weaken the sector.

He noted that Dangote Refinery’s products are currently sold at competitive depot prices and urged stakeholders to support local refining to attract further investment into the sector.

“Fuel import will not be good at all for the Nigerian economy,” he added, arguing that Nigeria’s crude oil resources make domestic refining the most sustainable long-term option.

Maigandi further said strengthening local production would stabilise supply, improve pricing structure, and reduce exposure to global market shocks.

As debate continues, the disagreement highlights deeper tensions between global policy prescriptions and Nigeria’s drive toward energy self-sufficiency, particularly as the downstream sector undergoes major structural changes.