World Bank’s Petrol Import Push in Nigeria ‘Deeply Troubling’, Says CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has expressed strong reservations about a policy recommendation by the World Bank advocating increased importation of petroleum products and food to address Nigeria’s supply-side constraints.

The position follows the reported removal of the World Bank’s latest Nigeria Development Update from its website after it advised the Federal Government to sustain the importation of Premium Motor Spirit (PMS) to stabilise fuel supply.

The April 2026 report had recommended continued fuel imports alongside a gradual transition to a competitive downstream market.

“This recommendation is deeply troubling and fundamentally misaligned with Nigeria’s current economic realities and reform trajectory,” said Muda Yusuf, founder and CEO of CPPE, in a note on Sunday.

He noted that Nigeria is making measurable progress in restoring macroeconomic stability—evidenced by improving foreign reserves, moderating inflation, a more stable exchange rate regime, and growing capacity for the export of refined petroleum products.

“At this stage, the policy priority should be to consolidate these gains, not undermine them,” he said.

Yusuf added that Nigeria is gradually transitioning towards greater self-sufficiency in petroleum product supply, driven by significant private investments in domestic refining capacity.

“This momentum should be strengthened through deliberate policies that support local production, enhance value addition, and deepen industrial linkages within the economy,” he said.

Africa’s most populous nation had earlier implemented a 150-day duty-free food import window from August 15 to December 31, 2024, allowing the importation of maize, wheat, and brown rice to ease food inflation pressures.

Also, data from the National Bureau of Statistics show that spending on petrol imports declined by 41.9 percent to N8.96 trillion in 2025, from N15.42 trillion in 2024.

The decline reflects improving domestic supply dynamics following increased local refining activity, including output from the Dangote Refinery, which began petrol production in 2024.

CPPE warned that encouraging increased importation of petroleum products at this stage risks reversing hard-won gains. 

It said such a move could exacerbate foreign exchange pressures, weaken domestic refining investments, and heighten Nigeria’s exposure to external shocks amid persistent geopolitical tensions and energy market volatility.

“The emphasis should be on expanding and stabilising domestic production capacity, ensuring reliable crude supply to local refineries on competitive terms, and fostering an enabling environment for downstream investments,” Yusuf said.

“This is the pathway to sustainable energy security, economic resilience, and long-term industrial development—not a return to import dependence.”

The think tank urged the World Bank to recalibrate its policy advice towards industrialisation-driven reforms rather than import expansion.

It outlined priority measures to include expanding domestic refining capacity, guaranteeing crude supply to local refineries, reducing production costs—particularly energy and logistics—strengthening manufacturing ecosystems, and enhancing agricultural productivity and agro-processing value chains.

Other recommendations include addressing structural bottlenecks constraining private sector production, promoting backward integration, and deepening local content development.

“These are the policy pathways that will deliver sustainable growth, job creation, and economic resilience,” CPPE said.