Energy experts have strongly criticised recent recommendations by the World Bank urging Nigeria to expand fuel importation and fully liberalise its downstream petroleum sector, warning that such advice is ill-timed, economically regressive, and contrary to the Petroleum Industry Act.
Speaking during a televised interview, energy economist and professor Ken Ife described the recommendation as a direct threat to Nigeria’s drive for energy self-sufficiency and local value addition.
“You cannot ask a struggling country that is building a vision of economic self-reliance to reverse course and return to fuel importation,” Ife said, warning that such guidance undermines national development priorities.
He stressed that the advice contradicts provisions of the Petroleum Industry Act, which mandates priority supply of crude oil to domestic refiners under the Domestic Crude Obligation framework.
“The law is clear—domestic refining comes first. Advising otherwise is not only against policy but a violation of the PIA,” he added.
Ife warned that increased reliance on imports would heighten exposure to global supply shocks, worsen foreign exchange pressures, and discourage investments in local refining capacity—especially as private sector participation continues to expand.
“We are on track to exceed domestic refining demand and become an energy exporter. It is baffling to suggest a return to import dependence,” he said
He further questioned the analytical basis of the World Bank’s position, describing it as an unsupported conclusion inserted into an otherwise credible report.
Echoing similar concerns, energy analyst Kelvin Emmanuel dismissed the recommendation as flawed and disconnected from market realities.
He also revealed that the World Bank had reportedly withdrawn the controversial Nigeria Development Update from its website.
“The report has been taken down. Anyone can verify this on the World Bank Nigeria website,” he said.
Emmanuel rejected claims that imported petrol could be cheaper than locally refined products, citing prevailing global market conditions.
“No marketer can land petrol in Nigeria at less than ₦1,759 per litre when freight, insurance, and supply risks are factored in,” he stated.
He attributed rising costs to global crude price volatility driven by geopolitical tensions, noting that spot prices significantly exceed futures benchmarks.
“Brent is around $144 per barrel, translating to about N1,249 per litre before additional costs,” he explained.
According to him, any perception of cheaper imports is likely tied to compromised product quality.
“The only way imported fuel appears cheaper is through lower standards, which has happened before,” Emmanuel said.
He also argued that petrol prices in Nigeria remain relatively lower than in neighbouring countries, dismissing claims of excessive domestic pricing.
On inflation and cost-of-living pressures, Emmanuel blamed weak enforcement of domestic supply policies rather than resource shortages.
“If local refiners receive crude as required by law, prices will stabilise and volatility will ease,” he said.
He further criticised the World Bank’s push for expanded social safety nets funded through borrowing, warning that such measures conflict with fiscal responsibility principles.
“Borrowing should fund capital projects and human development—not consumption. If support is needed, it should come as grants, not loans,” he added.
