Nigeria may need to reopen its doors to petrol imports as rising global energy costs and supply constraints continue to push fuel prices higher, the World Bank has warned. In its April 2026 Nigeria Development Update, the institution stressed that allowing imports could help ease pressure on households already struggling with inflation, particularly as geopolitical tensions in the Middle East disrupt global oil markets.
Despite recent gains in stabilising the economy, many Nigerians are still feeling the impact of rising living costs. Fuel prices surged sharply between February and March, with diesel nearly doubling in some regions. This spike has had a ripple effect, driving up transportation, food, and overall business costs, further tightening the financial strain on everyday citizens.
The World Bank noted that the federal government’s suspension of petrol import licenses since January 2026—intended to boost local refining—has reduced competition in the market. As a result, fuel prices have climbed above import-parity levels. Reintroducing qualified marketers into the import space, the Bank argues, would restore competition, improve supply, and stabilize pricing.
Speaking at the report’s launch, World Bank Lead Economist Fiseha Gebregziabher emphasized that reopening petrol imports could reduce inflationary pressures while ensuring energy security. He also called for broader reforms, including lowering trade tariffs, removing import restrictions, and maintaining tight monetary policies to control inflation. At the same time, he advised the government to provide targeted support to vulnerable households rather than reintroducing blanket subsidies.
While commending Nigeria’s recent economic reforms, the World Bank urged authorities to go further by improving fiscal discipline, expanding non-oil revenues, and investing in critical sectors like electricity and human capital. With global uncertainties mounting, especially from the Middle East crisis, policymakers face the delicate task of balancing economic stability with the urgent need to protect citizens from rising costs of living.
source: Business day