World Bank’s Fuel Import Call Divides Stakeholders
The World Bank’s call for Nigeria to reopen fuel imports has sharply divided downstream stakeholders, with marketers backing full deregulation while experts warn against undermining local refining.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) argued that restricting imports contradicts the Petroleum Industry Act (PIA), which was designed to foster competition.
“If you deregulate the economy, you would have competitive strength… saying there is no import licence is shrinking the market,” said IPMAN spokesperson Chinedu Ukadike.
Ukadike added that relying solely on domestic supply is unsustainable, noting that the Dangote Refinery has adjusted its prices multiple times in just four months.
“No one can sustain a business that way. Allow import so that it would dictate consumption and prices,” he said.
However, energy consultant Kelvin Emmanuel dismissed the World Bank’s advice as “flawed,” arguing that importers cannot land petrol at competitive prices.
“The reality is that importers cannot land PMS at less than ₦1,750 per litre… the assumption that imports will automatically reduce prices is not supported,” he stated.
Emmanuel linked the recommendation to global market frustrations, noting that Nigeria’s new refining capacity has disrupted traditional trade flows.
He stressed that Nigerians must accept that in a deregulated market, prices are tied to global crude benchmarks and exchange rates.
Prof. Wumi Iledare offered a middle ground, saying imports could temporarily stabilise supply and ease inflationary pressures but warned that overreliance could weaken investor confidence in local refining.
“Imports may be necessary for now, but they must be targeted, temporary, and transparent,” he said.
Prof. Dayo Ayoade questioned the World Bank’s motives, suggesting its advice aligns more with developed countries’ interests than Nigeria’s.
He urged regulators to ensure transparency in pricing rather than relying on external recommendations.
“We should prioritise energy security first. Pricing comes after that,” he noted.
Industry analyst Jeremiah Olatide stressed the need for transparency in Dangote’s pricing template, pointing out that pump prices remain high despite lower gantry prices.
“Transparency and competition will help stabilise the industry and reduce prices at the pump,” he said.
Culled from The PUNCH