The World Bank has urged Nigeria to reopen petrol imports despite recent efforts to boost local refining.
At the centre of the discussion is petrol imports in Nigeria, which the World Bank believes could help ease pressure on households. Prices are currently said to be above global levels.
According to the bank’s April 2026 Nigeria Development Update, fuel prices rose sharply between February and March. In some areas, diesel prices were reported to have nearly doubled.
Moreover, the report noted that the suspension of import licences since January has reduced competition.
Speaking during the report presentation, World Bank economist Fiseha Gebregziabher stressed the need for immediate action.
“To lower inflationary pressures, there are a couple of measures that we highlight in the report. One is the importance of restoring competition in the PMS market, including through reopening imports, which would help reduce prices.
“And then, there is a critical need to address supply constraints, including by reducing tariffs, lifting import bans, both on final products, but also on intermediate products. That would have significant implications for reducing production costs, and of course, by implication, inflationary pressures. But beyond the risks from the Middle East conflict, it’s important to sustain and deepen the ongoing reforms.”
He added that relying on a single refinery could weaken supply security. Therefore, broader sourcing options are needed to stabilize the market.
Meanwhile, the Federal Government had earlier halted import licences to support local production. This decision aligns with the Petroleum Industry Act.
However, the World Bank believes reopening the market will not undermine domestic refining goals.
Furthermore, the bank warned against broad fuel subsidies, describing them as harmful.
“Why do we need to avoid blanket subsidies? Because they’re counterproductive and they’re distortive,” Gebregziabher explained.
In addition, the report advised maintaining a tight monetary policy to control inflation. Exchange rate flexibility was also highlighted as essential.
Meanwhile, World Bank Country Director Mathew Verghis noted that reforms have started to stabilize the economy. However, he warned that gains remain limited.
“Moreover, the conflict in the Middle East adds pressures. Sustaining and deepening macroeconomic stabilization, as well as addressing structural constraints, will be critical to translating reform dividends into faster, more inclusive growth, jobs and improved living standards,” he said.
