The World Bank has quietly withdrawn a controversial April report urging Nigeria to reopen petrol imports, following strong objections from Dangote Industries. The original document argued that the halt of import licenses had created a monopoly for the Dangote Refinery, allowing local prices to sit roughly 12% higher than global import-parity levels. However, Dangote’s chief economist slammed the recommendation as dangerously flawed, arguing that reopening borders without strict quality standards would invite toxic, substandard fuels, undercut Nigeria’s new domestic refining muscle, and wreck fuel security. In response, the Bank replaced the report with a more cautious statement, emphasizing that competition should be introduced gradually while safeguarding quality and supply stability. The episode highlights a deeper policy divide in Nigeria: whether to prioritize lower prices through imports or strengthen local refining capacity for long-term energy security.
The Africa Report
