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.
Bank of Industry (BOI), Nigeria’s foremost Development finance institution and a globally recognised organisation specialising in international development cooperation with countries, the German Agency for International Cooperation (GIZ), on Wednesday April 15, 2026, signs a Partnership Framework Agreement to drive sustainable innovation and economic development for large enterprise, and Micro, Small and Medium Enterprises (MSMEs) sector in Nigeria.
The partnership is hinged on delivering coordinated interventions across key strategic pillars including access to finance, entrepreneurship development, capacity building, and market access; and integrates focused support for climate finance and renewable energy investments; and a robust alignment with global sustainability priorities that enables MSMEs to be engines of economic development.
With this landmark agreement, BOI and GIZ are positioned to mutually ensure that capacity building efforts for businesses focuses on strengthening the technical and institutional capabilities of BOI’s Business Development Service Providers (BDSPs), equipping them to deliver higher-impact advisory services to the Bank’s customers; as well as enshrine a structured vocational training provided under the ICSS (Inspire, Create, Start and Scale) entrepreneurship programme to enhance productivity, workforce quality and overall business competitiveness to MSMEs.
The central pillar of this year’s partnership framework is its women’s economic empowerment through targeted financing initiatives; agribusiness development and rural enterprise growth; and climate-focused investment imperative to scale its renewable energy and energy efficiency financing portfolio.
BOI will strategically deepen its efforts to secure endorsement with the Green Climate Fund (GCF) with support from GIZ, a German-led development agency.
Speaking at the announcement ceremony, MD/CEO, Bank of Industry (BOI), Dr. Olasupo Olusi, said “This partnership is about closing the gap between enterprise potential and enterprise reality. Too many Nigerian businesses, particularly MSMEs, have the ideas, the drive, and the market opportunity, but lack the financing, technical capacity, or market access needed to scale. This partnership reflects our unwavering commitment to constantly form new partnerships to strengthen the entrepreneurial ecosystem in Nigeria. By combining our financing expertise with our partner’s international development experience, we are building a comprehensive framework that will directly translate into jobs, innovation, affordable, long-term financing and sustainable growth for MSMEs in Nigeria.”
In his remarks, Country Director, GIZ Nigeria and ECOWAS, Dr. Magnus Wagner, said, “This partnership demonstrates our joint commitments to strengthening Nigeria’s private sector and to advancing sustainable and inclusive economic growth.
“Through this partnership, we aim to support small and medium enterprises. We are trying more to look at SME, formalized business, which is the resilient backbone of Nigeria’s economy. So, we would like to work, we have decided in areas such as climate and sustainable finance, renewable energy and energy efficiency, entrepreneurship and innovation, women’s economic empowerment, agribusiness and rural transformation, and digital trade and market access.
“We look forward to a close and successful collaboration with the Bank of Industry, one that delivers tangible results for business, communities, and the country and the population as a whole”.
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