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Petroleum marketers and experts have strongly rejected the World Bank’s recommendation for Nigeria to open its borders to import premium motor spirit, challenging the plan to edge out Dangote Refinery.

The World Bank made the suggestion in its Nigeria Development Update, released on April 7, advocating for an increased focus on imports.

According to the report, the bank claimed that imported fuel was cheaper than domestically produced petrol.

This recommendation sparked a wave of controversy across Nigeria.

Shortly after, the World Bank removed the report from its website, clarifying that its stance was not a blanket endorsement of fuel imports, but part of a broader strategy involving reforms and consumer protection.

Following the backlash, the World Bank reversed its initial position on the liberalization of the downstream oil sector in Nigeria.

The bank clarified, “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.”

Energy experts have voiced strong disapproval of the World Bank’s fuel importation proposal, especially given the ongoing global supply disruptions due to the Iran-United States-Israel conflict.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, criticized the proposal, stating it would be counterproductive for Nigeria.

Similarly, Eche Idoko, spokesperson for the Crude Oil Refinery-Owners Association of Nigeria (CORAN), opposed the recommendation, highlighting concerns about the lower quality of imported fuel.

However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), under its president Billy Gillis-Harry, supported the World Bank’s stance, citing competitiveness in the petroleum sector.

Despite PETROAN’s support, their position conflicts with President Bola Tinubu’s “Nigeria first” policy.

In an exclusive interview with DAILY POST, Dr. Tim Okon, managing partner at TENO Energy Resources, and Abubakar Maigandi, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), both backed Dangote Refinery.

Dr. Okon questioned the relevance of the World Bank’s fuel import advice, arguing that Nigeria should focus on building a flexible and competitive domestic supply system.

“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.

He criticized the recommendation as “an unnecessary theory,” driven more by Nigeria’s financial obligations than its long-term economic interests.

He also emphasized that a stable fuel market requires offering various fuel options, tailored to different consumer needs.

“Different blends of these products should be available,” Okon said, advocating for a diverse market.

On the global fuel market’s current shift, Okon pointed out that Nigeria’s reduced imports have disrupted European supply chains.

“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 said.

IPMAN’s president, Abubakar Maigandi, also rejected the World Bank’s suggestion for increased fuel imports, stressing the importance of boosting Nigeria’s local refining capacity, particularly with the Dangote Refinery.

“Dangote has a refinery. We rely on that particular refinery because that’s what we have needed for years,” Maigandi stated.

He called for more support for local refineries to foster competition and investment in the sector.

“Fuel importation is not good for Nigeria’s economy,” he added, reiterating that relying on local refining would support economic growth.

Maigandi highlighted that Dangote’s fuel is priced at N1,200 per liter, with some depot owners purchasing it at slightly higher rates, emphasizing its superior quality and affordability.

“We should start refining our raw material here in Nigeria. It’s the best solution,” Maigandi concluded.

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