Energy experts reject World Bank fuel import plan, warning it could weaken Nigeria’s refining drive and energy security goals
The Nigerian petroleum and energy sector , witnessed a sharp policy clash as petroleum marketers and industry experts in Lagos and Abuja rejected a World Bank recommendation urging Nigeria to reopen its borders for the importation of Premium Motor Spirit, popularly known as petrol.
The World Bank had, in its Nigeria Development Update released on April 7, advised Nigeria to prioritise fuel imports on the grounds that imported petrol could be cheaper than locally refined products.
The position, however, quickly triggered widespread backlash across the downstream oil sector, with stakeholders warning it could destabilise Nigeria’s emerging refining ecosystem.
Petroleum Products Retail Outlets Owners Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, and energy analysts were among those who strongly opposed the proposal, arguing that it runs counter to Nigeria’s ongoing efforts to strengthen domestic refining capacity.
The Centre for the Promotion of Private Enterprise, through its Chief Executive Officer, Dr Muda Yusuf, described the recommendation as counterproductive, stressing that Nigeria must focus on long term industrial stability rather than short term import dependence.
A major turning point followed when the World Bank reportedly deleted the initial report from its platform and clarified that its recommendation was not intended as an outright endorsement of fuel importation.
The institution explained that its broader objective was centred on consumer protection and social welfare support mechanisms.
Energy analysts further warned that increasing reliance on imports at a time of global supply instability, driven by geopolitical tensions affecting major oil producing regions, could expose Nigeria to external shocks and price volatility.
They argued that such vulnerability would undermine recent gains recorded in local refining and downstream reforms.
Speaking on the controversy, energy expert Dr Tim Okon questioned the influence of external financial institutions on domestic policy direction, describing the recommendation as unnecessary and cautioning against over reliance on foreign policy prescriptions.
In contrast, a minority position emerged from the Petroleum Products Retail Outlets Owners Association of Nigeria, which supported liberalised import access, arguing it could enhance competition and efficiency in the downstream market.
However, most stakeholders aligned with Nigeria’s emerging “Nigeria First” industrial policy direction, championed by the Federal Government, which prioritises domestic production and consumption of refined petroleum products.
Independent Petroleum Marketers Association of Nigeria President, Abubakar Maigandi, reinforced opposition to fuel importation, insisting that Nigeria must prioritise local refining capacity, particularly support for domestic facilities such as the Dangote Refinery.
He stated that imported fuel would undermine local investment and weaken economic stability, adding that Nigeria already possesses sufficient crude resources to sustain domestic refining.
Stakeholders collectively maintained that strengthening local refining infrastructure remains the most sustainable path to energy security, price stability, and long term economic resilience, urging policymakers to remain focused on domestic production reforms rather than reopening import dependency.
