Petroleum marketers and experts have rejected the Washington-based World Bank’s recommendations to Nigeria to open the country’s borders for petroleum imports despite having the Dangote Refinery. In its Nigeria Development Update, released on April 7, the global bank recommended that Africa’s most popular country prioritise imports. The bank asserted that imported fuel is less expensive than domestically produced petrol, although this claim remains unverified.
However, considering the country has the Dangote refinery, the World Bank’s recommendations had stirred controversy.
Days later, the World Bank had deleted from its website the NDU report and clarified that its recommendation is not a blanket stamp on fuel importation but a broader strategy linked to reforms and consumer protection in Nigeria.
The bank then reversed its earlier stance on downstream oil sector liberalisation in Nigeria.
“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, and the World Bank Group stands ready to step up its existing support,” the World Bank stated on Thursday last week.
Accordingly, Energy experts have faulted the World Bank’s stance, especially with the current global supply shock as a result of the Iran-United States-Israel war, which entered its seventh week on Tuesday.
It was learned that the Centre for the Promotion of Private Enterprise, in a statement by its Chief Executive Officer, Dr. Muda Yusuf, at the weekend, said the World Bank’s fuel import proposal for Nigeria would be counterproductive.
Similarly, the spokesperson of the Crude Oil Refinery-Owners Association of Nigeria (CORAN), Eche Idoko, faulted the recommendations, noting that imported fuel was of lower quality.
However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), led by its national president, Billy Gillis-Harry, backed the World Bank, citing competitiveness in the petroleum downstream sector.
However, the Association’s move is against the ‘Nigeria first’ policy advanced by President Bola Ahmed Tinubu.
In an exclusive interview with DAILY POST on Monday, the managing partner of TENO Energy Resources Limited, Dr. Tim Okon, and the president of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, threw their weights behind Dangote Refinery.
Let Nigeria be—Engr Okon faults World Bank
Okon has questioned the relevance of the World Bank’s recommendation, arguing that the country must focus on building a flexible and competitive domestic supply system rather than thinking of importing what is readily available.
According to him, the influence of the World Bank on Nigeria’s economic decisions stems largely from the country’s excessive borrowing from international financial institutions.
“Why should the view of the World Bank be so important? It has become important because we have borrowed too much from them,” he said, adding that dependence on external funding often gives such institutions leverage to shape domestic policies.
He described the recommendation as “an unnecessary theory", noting that it reflects the extent of Nigeria’s financial obligations rather than the country’s long-term economic interests.
According to him, the key to a stable fuel market lies in offering multiple blends of petrol at different price points to meet varying consumer needs.
“There are different blends of these products. If I have a 30-year-old Camry, do I really need super premium petrol? No,” he said, emphasising that regulatory authorities should ensure a range of fuel options are available.
Okon further revealed that recent shifts in the global fuel market, including reduced Nigerian imports, had disrupted established supply chains in Europe.
“Whatever the World Bank may think is simply because Nigeria was a major importer. Now that has changed, and the market has been disrupted."
Patronize Dangote Refinery – IPMAN tells marketers and the Nigerian govt.
The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, rejected calls for increased fuel importation into Nigeria, insisting instead that the country should focus on strengthening local refining capacity.
The IPMAN president emphasised that Nigeria now has viable domestic refining capacity, particularly with the operations of the Dangote Refinery, which he said should be fully supported.
“Well, in fact, you know Dangote has a refinery. And we rely on that particular refinery because that’s what we have been looking for over the years. So, we are not telling anybody to go for importation,” he said.
Maigandi stressed that marketers and stakeholders should prioritise patronising locally refined petroleum products to encourage further investment in the sector.
“We are saying people should be patronising Dangote. Yes, so that other refineries that are coming can start doing business.
“Fuel import will not be good at all for the Nigerian economy,” he added.
He argued that continued reliance on imports would undermine economic growth, noting that domestic refining remains the most sustainable solution given Nigeria’s crude oil resources.
“Any importation is not good for the country. The best solution, since we have the raw material, is that we should start refining our raw material in our country,” Maigandi said.
Providing insight into current pricing, he disclosed that petrol from Dangote Refinery is sold at about N1,200 per litre, with depot owners purchasing at slightly higher rates ranging between N1,220 and N1,240 per litre.
“Dangote’s product is always cheaper than any product that you know, and it has a very good quality,” he stated.
Maigandi reiterated that strengthening local refining capacity would not only stabilise fuel supply but also support Nigeria’s broader economic development. Dailypost.
