World Bank tells Nigeria to resume petrol imports as fuel prices surge
Quick Reads
- The World Bank is urging Nigeria to resume petrol imports to ease rising fuel prices and inflationary pressures.
- The Nigerian government suspended import licenses in January 2026 to boost local refining, but prices have since climbed above import-parity levels.
- Reopening imports would restore competition and stabilise supply, according to the Bank’s April 2026 Nigeria Development Update.
- Fuel prices surged sharply between February and March, with diesel nearly doubling in some regions.
The World Bank has called on Nigeria to reopen its doors to petrol imports, warning that rising global energy costs and supply constraints are pushing domestic fuel prices higher and squeezing households already struggling with inflation. In its April 2026 Nigeria Development Update, the institution said allowing imports would restore competition, improve supply, and stabilise prices.
The Nigerian government suspended petrol import licences in January 2026 with the aim of boosting local refining capacity. But the World Bank argues that move has reduced competition in the market, driving fuel prices above import-parity levels. Between February and March, fuel prices surged sharply, with diesel nearly doubling in some regions, according to the report. That spike has rippled through the economy, raising transport, food, and business cost
Speaking at the report’s launch, World Bank Lead Economist Fiseha Gebregziabher said reopening petrol imports could reduce inflationary pressures while ensuring energy security. He also advised against reintroducing blanket subsidies, instead recommending targeted support for vulnerable households.
Beyond fuel imports, the World Bank urged Nigeria to pursue broader reforms: lowering trade tariffs, removing import restrictions, maintaining tight monetary policy to control inflation, improving fiscal discipline, expanding non-oil revenues, and investing in electricity and human capital. The Bank commended recent economic reforms but said more is needed, particularly as geopolitical tensions in the Middle East disrupt global oil markets.
Market Snapshot (Nigeria focus)
- Policy action sought: Resumption of petrol imports
- Key driver: Rising global energy costs + Middle East tensions
- Observed impact (Feb–Mar 2026): Diesel nearly doubled in some regions
- Bank’s warning: Supply constraints pushing prices above import-parity levels
