World Bank Fuel Import Recommendation Sparks Backlash in Nigeria as Expert Cites PIA Violation

An energy economist, Ken Ife, has strongly criticised the World Bank’s recommendation that Nigeria should deepen fuel imports and further liberalise its downstream petroleum sector, arguing that the proposal contradicts the country’s legal and policy direction under the Petroleum Industry Act (PIA). He described the advice as “ill-timed” and inconsistent with Nigeria’s ongoing push for energy independence.

Speaking during a televised interview on Nigeria’s economic outlook, Ife said while parts of the World Bank’s Nigeria Development Update were technically sound, its position on fuel import dependence was fundamentally flawed. According to him, encouraging Nigeria to reverse its refining ambitions and rely more on imports undermines long-term economic stability.

He argued that Nigerian law already prioritises local refining capacity, stressing that any policy direction that encourages import dependence goes against both government strategy and the provisions of the PIA. Ife also insisted that rising fuel price pressures in the country are largely structural and could be reduced if local refiners receive crude under the terms established by law.

The economist further warned that increasing fuel imports could expose Nigeria to external market shocks, strain foreign exchange reserves, and discourage investments in domestic refining projects. He also raised concerns about proposals tied to expanded social safety nets funded through borrowing, noting that such approaches could conflict with fiscal responsibility principles.

The debate follows controversy surrounding the World Bank’s Nigeria Development Update, which initially suggested continued fuel imports to stabilise supply but was later revised amid global energy volatility concerns. The update has since triggered wider reactions from stakeholders, including the Centre for the Promotion of Private Enterprise, which also questioned its alignment with Nigeria’s reform trajectory.

source: Nairametrics