Marketers, Experts Reject World Bank Fuel Import Advice On Dangote Refinery Policy Move

According to Ireporter Online, petroleum marketers and energy experts have strongly opposed a recent recommendation by the World Bank urging Nigeria to open its borders for the importation of Premium Motor Spirit (PMS), popularly known as petrol, warning that such a policy could weaken domestic refining capacity and expose the economy to external shocks.

The World Bank, in its Nigeria Development Update released on April 7, had suggested that Nigeria should prioritise fuel imports on the basis that imported petrol was cheaper than locally refined products. The position sparked immediate controversy across the oil and gas sector, with stakeholders questioning its implications for Nigeria’s energy independence.

Following widespread criticism, the World Bank later removed the report from its website and clarified that its comments were not an outright endorsement of fuel importation. The institution explained that its broader recommendation focused on strengthening social safety nets to protect vulnerable citizens, while also indicating a revised stance on downstream oil sector liberalisation.

Energy analysts, however, argued that encouraging importation at a time of global supply disruptions linked to geopolitical tensions between major global powers could further expose Nigeria to volatile international fuel markets. The Centre for the Promotion of Private Enterprise described the proposal as counterproductive, while the Crude Oil Refinery-Owners Association of Nigeria maintained that imported fuel may not match the quality of locally refined products.

In contrast, the Petroleum Products Retail Outlets Owners Association of Nigeria supported the World Bank’s position, saying liberalised imports could boost competition and efficiency in the downstream sector. However, this view contrasts with the Federal Government’s “Nigeria First” policy, which prioritises local production and consumption.

The Managing Partner of TENO Energy Resources Limited, Dr Tim Okon, questioned the influence of external financial institutions on Nigeria’s policy direction, arguing that overreliance on borrowing has increased foreign leverage over domestic decisions. He maintained that Nigeria should focus on building a competitive and flexible local fuel supply system rather than depending on imports.

Okon further stressed the need for varied fuel blends tailored to different consumer needs, insisting that a stronger domestic refining system would eliminate unnecessary dependence on foreign products.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) firmly rejected the idea of increased fuel importation, urging greater patronage of local refineries, particularly the Dangote Refinery. IPMAN leadership argued that sustained import dependence would discourage investment in the sector and undermine Nigeria’s long-term energy security.

Stakeholders collectively maintained that boosting domestic refining capacity remains the most viable path to stabilising fuel supply, reducing exposure to global market volatility, and strengthening Nigeria’s economic resilience.