An energy economics expert, Professor Ken Ife, has urged the Nigerian government to prioritise local refining over the World Bank’s advice encouraging the country to return to fuel importation, stating that such a move would undermine Nigeria’s quest for industrialisation.

Speaking during a televised programme on Nigeria Economic Outlook, Ife cautioned that the World Bank’s recommendation to fully liberalise the downstream sector contradicts the Petroleum Industry Act (PIA), which emphasises domestic crude supply for local refineries.

The expert stated that improving local refining capacity is important for stabilising the country’s economy and reducing reliance on imports, emphasising that Nigeria’s economic survival depends on domestic manufacturing and value addition rather than a return to dependence on foreign goods, particularly in the energy sector.

“You cannot come to a country that is struggling and which has just developed a vision of economic self-reliance and then advise it to reverse course and return to fuel importation. That kind of recommendation undermines everything Nigeria is trying to achieve.

“The law is very clear. Domestic refining must come first. Advising Nigeria to abandon that path is not just against government policy; it is a clear violation of the PIA.”

Ife further cautioned that increased fuel importation would leave Nigeria more vulnerable to global supply disruptions, accelerate foreign exchange depletion, and discourage ongoing investments in local refining, particularly at a time when private sector participation is expanding capacity.

“We are on track to build refining capacity that will exceed domestic demand and position Nigeria as an energy exporter. How can anyone credibly suggest that we abandon this progress and return to reckless import dependence?” he questioned.

The economist said there is no basis for the World Bank’s fuel import recommendation. “This conclusion was strangely parachuted into what was largely a strong analysis. There is no evidence supporting a return to imports at a time when major refining countries are restricting exports,” the expert stated.

In its April 2026 Nigeria Development Update, the World Bank recommended that Nigeria urgently reopen its petrol import market to foster competition and stabilise supply, arguing that domestic petrol prices exceed import-parity levels.

The bank advised the government to support vulnerable households. It further urged the country to allow more players to import petrol to increase competition, stating that domestic prices from the Dangote refinery were roughly 12% higher than import-parity prices in March 2026.Tyavzua Saanyol, Abuja

An Energy Economic Expert, professor Ken Ife, has encouraged the Nigerian government to prioritize local refining against the advice of the World Bank urging the country to return to fuel importation, stating that taking such a step would undermine Nigeria’s quest for industrialization.

Speaking during a televised programme on Nigeria’s Economic Outlook, Ife cautioned that the World Bank’s recommendation to fully liberalize the downstream sector contradicts the Petroleum Industry Act (PIA), which emphasizes domestic crude supply for local refineries.

The expert stated that improving local refining capacity is important in order for the country’s economy to stabilize and reduce reliance on imports, emphasizing that Nigeria’s economic survival relies on domestic manufacturing and value addition, rather than reverting to reliance on foreign goods, particularly in the energy sector.

“You cannot come to a country that is struggling and which has just developed a vision of economic self-reliance and then advise it to reverse course and return to fuel importation. That kind of recommendation undermines everything Nigeria is trying to achieve.

“The law is very clear. Domestic refining must come first. Advising Nigeria to abandon that path is not just against government policy; it is a clear violation of the PIA”.

Ife further cautioned that increased fuel importation would leave Nigeria more vulnerable to global supply disruptions, accelerate foreign exchange depletion, and discourage ongoing investments in local refining, particularly at a time when private sector participation is expanding capacity.

“We are on track to build refining capacity that will exceed domestic demand and position Nigeria as an energy exporter. How can anyone credibly suggest that we abandon this progress and return to reckless import dependence?” he questioned.

The economist said there is no basis for the World Bank’s fuel import recommendation: “This conclusion was strangely parachuted into what was largely a strong analysis.” There is no evidence supporting a return to imports at a time when major refining countries are restricting exports,” the expert stated.

In its April 2026 Nigeria Development Update, the World Bank recommended that Nigeria urgently reopen its petrol import market to foster competition and stabilize supply, arguing that domestic petrol prices exceed import-parity levels.

The bank advised the government to support vulnerable households. The bank further charged the country to allow more players to import petrol to increase competition, stating that domestic prices from the Dangote refinery were roughly 12% higher than import-parity prices in March 2026.

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