The World Bank Group issued a clarification on its fuel‑import recommendation after criticism of its Nigeria Development Update. In a statement to The PUNCH on Friday, the bank said its April 2026 report, released on 7 April, advised allowing imports of Premium Motor Spirit (PMS) but stressed that the advice must be seen within a wider policy framework. The statement warned that "given current global energy supply disruptions, such a recommendation may run counter to efforts that countries around the world are undertaking to ensure their energy and national security."
Social media activist Dan Bello was among those who challenged the recommendation, questioning its impact on Nigeria's domestic refining goals. The bank's webpage for the update was reportedly removed shortly after the debate intensified.
The World Bank clarified that its stance is not a blanket endorsement of fuel imports, linking it to market reforms and consumer protection. It called for targeted support for vulnerable groups through a robust social safety net and said it is ready to expand existing assistance.
The institution added that any liberalisation of fuel imports must be carefully managed to protect national energy security amid fragile global supply chains, and that downstream reforms should be gradual and structured. It praised the Federal Government of Nigeria and private investors for steps taken to stabilise fuel supply, noting the Dangote refinery's role as the main domestic supplier after import licences were halted in early 2026.
The bank's data showed imported petrol priced about 12 percent lower than Dangote‑refined fuel, with the refinery's ex‑depot price at roughly N1,275 per litre on 23 March 2026 versus an estimated import‑parity price of N1,122 per litre. It warned that a rise in oil prices to around $80 a barrel—a 31.1 percent increase from pre‑conflict levels—could intensify inflationary pressures.
The World Bank's insistence on importing Premium Motor Spirit, despite domestic refining investments, reveals a tension between external advice and Nigeria's ambition to become self‑sufficient in fuel production.
While the bank frames the recommendation as part of a broader market‑reform agenda, its data showing a 12 percent price advantage for imports undercuts the narrative that local refineries, especially the Dangote plant, can meet demand affordably. The timing coincides with the regulator's suspension of import licences earlier this year, a move intended to protect nascent refining capacity.
For ordinary Nigerians, especially low‑income earners, the debate translates into the price at the pump. If imports are permitted without stringent safeguards, cheaper foreign petrol could lower retail prices, but it may also erode the market share of domestic refineries, jeopardising jobs and the long‑term goal of energy independence.
The episode mirrors a broader pattern where international financial institutions influence policy choices in Nigeria, often prioritising short‑term consumer price stability over the strategic development of local industry.
