The World Bank Group has clarified its stand on the recommendation for Nigeria to resume the importation of petrol, stating that given current global energy supply disruptions, such recommendation may run counter to efforts that countries around the world are undertaking to ensure their energy and national security.
- +World Bank clarifies stand on fuel importation recommendation
The Bank, in its latest edition of the Nigeria Development Update had recommended reopening of the PMS market to competition, stating that the suspension of import licenses since January 2026 has reduced competition, allowing prices to exceed import-parity levels.
The Bank, in its latest edition of the Nigeria Development Update had recommended reopening of the PMS market to competition, stating that the suspension of import licenses since January 2026 has reduced competition, allowing prices to exceed import-parity levels.
It stated that allowing qualified marketers to resume imports would restore competition, reduce pricing distortions, and better align domestic prices with global benchmarks.
However, in a statement issued to BusinessDay on Thursday, the Bank said that in the case of Nigeria, the focus should be to provide targeted support to the most vulnerable people through their well-functioning social safety net system, adding that the World Bank Group stands ready to step up its existing support.
It stated that over time, transitioning toward a competitive retail market for Premium Motor Spirit is an important policy direction that requires a well-sequenced implementation strategy that guarantees the quality and standards of all petroleum products.
“The World Bank Group released its April 2026 edition of the Nigeria Development Update on April 7. Included in the report is a recommendation to allow imports of premium motor spirit.
“Given current global energy supply disruptions, such recommendation may run counter to efforts that countries around the world are undertaking to ensure their energy and national security.
“In the case of Nigeria, the focus should be to provide targeted support to the most vulnerable people through their well-functioning social safety net system, and the World Bank Group stands ready to step up its existing support.
“Over time, transitioning toward a competitive retail market for Premium Motor Spirit is an important policy direction that requires a well-sequenced implementation strategy that guarantees the quality and standards of all petroleum products,” the statement read.
The Bank also stated that it recognizes the efforts of the Government of Nigeria and the Nigerian private sector in taking concrete steps to safeguard fuel supply, describing it as a foundation that is essential to protect consumers and businesses.
A check by BusinessDay on the Bank’s website confirmed that the NDU report has since been taken down.
In In the version of the NDU report previously obtained by BusinessDay, the Bank noted that Nigeria faces a complex mix of positive and negative spillovers from the Middle East conflict, requiring a carefully calibrated policy response to balance short-term gains with emerging risks.
It stated that while higher oil prices provide temporary fiscal and external relief, they are accompanied by rising inflationary pressures, tighter external financing conditions, and increased uncertainty.
“In this context, policy should aim to preserve recent macroeconomic stabilization gains while mitigating the impact on households. This require prudently managing the oil windfall, avoiding procyclical policies, and channeling part of the gains to cushion the most vulnerable.”
It also added that maintaining credible macro-fiscal policies will be essential to sustain investor confidence and navigate a more volatile global environment.
