World Bank clarifies stance on Nigeria’s fuel imports after criticism
The World Bank Group has responded to criticism regarding its recent recommendations on fuel imports in Nigeria. The bank clarified that its guidance, featured in its April 2026 Nigeria Development Update, should be seen within a broader policy context and not as a blanket endorsement of fuel importation. The clarification follows backlash from policy commentators and social media activists, including Dan Bello, who questioned the implications for Nigeria's domestic refining ambitions. The bank also addressed concerns about the impact of its recommendations on national energy security and consumer protection.
TLDR
- The World Bank Group released its April 2026 Nigeria Development Update on April 7, recommending the allowance of Premium Motor Spirit imports.
- The bank said its suggestion should be understood as part of a broader policy strategy, not an outright endorsement of fuel imports.
- The report noted that imported petrol is about 12% cheaper than fuel from the Dangote Petroleum Refinery, with ex-depot prices at about N1,275 per litre as of March 23, 2026, versus an import-parity price of around N1,122 per litre.
- The bank warned that an increase in oil prices to about $80 per barrel—representing a 31.1% rise relative to pre-conflict levels—could add around 3.1 percentage points to headline inflation.
- The World Bank emphasised the need for gradual and structured reforms in Nigeria’s downstream petroleum sector and highlighted ongoing efforts by Nigerian authorities and private investors to stabilise fuel supply.
