A growing backlash has trailed the World Bank’s recommendation for Nigeria to increase fuel imports, with energy experts and policy analysts warning that the advice contradicts the country’s legal framework and economic direction.
An energy economist, Professor Ken Ife, described the World Bank’s position as “ill-timed” and inconsistent with Nigeria’s petroleum laws, particularly the Petroleum Industry Act (PIA).
He argued that pushing for deeper import dependence undermines the intent of the law, which is structured to promote domestic refining, market efficiency, and long-term energy security.
The criticism follows the World Bank’s Nigeria Development Update, which suggested reopening the market for Premium Motor Spirit (petrol) imports to improve competition and stabilize prices.
However, the recommendation has triggered strong opposition across Nigeria’s energy and economic policy space. Experts insist that Nigeria is at a critical transition point, with increasing local refining capacity driven by private investments.
They argue that encouraging imports at this stage risks reversing progress toward fuel self-sufficiency and weakening investor confidence in the downstream sector.
According to Ife and other analysts, the PIA was designed to reduce import dependency, strengthen domestic production, and ensure a competitive but locally anchored petroleum market.
Any policy direction that prioritizes imports, they argue, directly conflicts with these objectives and could distort the regulatory framework.
The Centre for the Promotion of Private Enterprise (CPPE) also rejected the World Bank’s stance, warning that increased fuel importation would heighten pressure on foreign exchange, expose the economy to external shocks, and discourage investment in local refining infrastructure.
Critics further caution that Nigeria’s historical reliance on imported petroleum products contributed to the collapse of domestic refining capacity and imposed heavy fiscal and currency burdens. Repeating such a strategy, they argue, risks entrenching structural weaknesses in the economy.
While the World Bank maintains that its recommendation is part of a broader reform strategy aimed at improving supply stability and protecting consumers, the debate has exposed a sharp divide between global policy prescriptions and local economic priorities.
The controversy underscores a broader policy dilemma: whether Nigeria should prioritize short-term price stability through imports or sustain its long-term strategy of building a self-reliant, production-driven energy sector.
Source: Nairametrics
