Petroleum marketers and energy experts in Nigeria have pushed back against recent recommendations by the World Bank urging the country to prioritize the importation of premium motor spirit (PMS), insisting that such a move would undermine local refining capacity and economic growth.
The Washington-based financial institution, in its Nigeria Development Update released on April 7, initially suggested that fuel imports could help lower costs for consumers, claiming imported petrol was cheaper than domestically refined products. The recommendation sparked widespread controversy among industry stakeholders.
Amid the backlash, the World Bank later removed the report from its website and clarified that its position was not a blanket endorsement of fuel importation but part of a broader reform strategy focused on consumer protection and social support systems. The institution subsequently moderated its stance on downstream sector liberalisation in Nigeria.
However, local industry players remain unconvinced.
The Centre for the Promotion of Private Enterprise (CPPE), through its Chief Executive Officer, Dr. Muda Yusuf, described the proposal as counterproductive, warning that increased reliance on imports could weaken Nigeria’s domestic refining sector.
Similarly, the Crude Oil Refinery-Owners Association of Nigeria (CORAN), through its spokesperson, Eche Idoko, criticised the recommendation, arguing that imported fuel is often of lower quality.
In contrast, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), led by its National President Billy Gillis-Harry, supported the World Bank’s position, citing the need for competition in the downstream petroleum sector. However, this stance appears to conflict with the Federal Government’s “Nigeria First” policy under President Bola Ahmed Tinubu.
Speaking in separate interviews, industry experts and marketers strongly advocated for the prioritisation of local refining, particularly the operations of the Dangote Refinery.
Managing Partner of TENO Energy Resources Limited, Dr. Tim Okon, questioned the relevance of the World Bank’s influence on Nigeria’s policy direction, attributing it 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 “an unnecessary theory” that does not align with Nigeria’s long-term interests.
Okon emphasised the need for a flexible domestic fuel market, suggesting the availability of different petrol blends at varying price points to cater to consumers.
He also noted that Nigeria’s reduced reliance on imports has already disrupted established global supply chains, particularly in Europe.
Echoing similar sentiments, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, urged both the government and marketers to ignore calls for increased fuel importation and instead support local refining initiatives.
“We are saying people should be patronising Dangote. That is what we have been looking for over the years,” Maigandi stated.
He warned that continued fuel importation would be detrimental to Nigeria’s economy, stressing that domestic refining remains the most sustainable solution given the country’s crude oil resources.
“Any importation is not good for the country. The best solution is to refine our raw materials locally,” he added.
Providing insight into current market trends, Maigandi disclosed that petrol from the Dangote Refinery is currently sold at approximately ₦1,200 per litre, with depot prices ranging between ₦1,220 and ₦1,240 per litre.
He maintained that locally refined fuel offers both competitive pricing and superior quality, adding that strengthening domestic refining capacity would enhance supply stability and drive broader economic development.
As debates continue, the issue underscores the broader tension between global policy recommendations and Nigeria’s push for economic self-reliance in its energy sector.
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