- The World Bank Group has addressed the controversy surrounding its recommendation for fuel imports in Nigeria, stating that the advice must be understood within a broader policy and market reform context.
- The bank acknowledged that promoting fuel imports could seem to conflict with global trends toward energy and national security, especially given current geopolitical supply chain disruptions.
- Data from the bank’s latest report indicates that imported petrol remains approximately 12% cheaper than the supplies currently provided by the Dangote Petroleum Refinery.
The World Bank has moved to clarify its position on Nigeria’s petroleum sector following significant criticism from policy commentators and social media activists.
Eko Hot Blog reports that in a statement released on Friday, April 10, 2026, the financial institution explained that its recent Nigeria Development Update (NDU) suggested allowing the importation of Premium Motor Spirit (PMS) as a measure to foster a competitive retail market.
EDITOR’S PICKS
- Judge Frees 37 Inmates Over Prolonged Detention in Akwa Ibom
- Trump Threatens Iran Over Energy Attacks
- Tinubu Excludes Kemi Badenoch from UK State Visit Itinerary
This clarification follows a heated public debate, notably amplified by activists like Dan Bello, who questioned how such a recommendation aligns with Nigeria’s efforts to boost domestic refining capacity.
Central to the bank’s report is a finding that highlights a cost differential in the local market.
As of late March 2026, the Dangote Refinery, the primary supplier since the cessation of import licenses earlier this year, set its ex-depot price at approximately ₦1,275 per litre.
In contrast, the World Bank estimated the import-parity price at roughly ₦1,122 per litre.
The bank noted that while domestic refining is a foundation for energy security, the current distortions in the pricing structure, exacerbated by soaring global crude prices due to Middle East tensions, place additional pressure on Nigerian consumers.
The World Bank emphasized that any transition toward a more liberalized import regime should be gradual and structured to protect the most vulnerable citizens.
The statement clarified that the bank is not calling for an abandonment of domestic refining but is advocating for a “well-sequenced implementation strategy” that ensures high standards and competitive pricing.
The bank also reiterated its readiness to support the Federal Government through expanded social safety nets to mitigate the impact of fuel price volatility on poor households.
The controversy also saw the temporary removal of the Nigeria Development Update webpage, which the bank attributed to the need to address the intensity of the public interpretation.
Moving forward, the World Bank recognized the ongoing efforts of the Nigerian government and private investors to stabilize the energy sector.
However, it warned that if global oil prices rise to ₦80 per barrel due to conflict, it could add significantly to headline inflation, making the balance between domestic production and cost-effective imports a critical challenge for the Tinubu administration.
