World Bank urges Nigeria to resume petrol imports as Dangote Refinery dominance pushes fuel prices above ₦1,300.
The World Bank has called on Nigeria to restore petrol import licenses, warning that current market conditions are fueling sharp price increases and limiting competition.
In its April 2026 report, the global financial institution noted that Nigeria’s suspension of fuel import permits since January has effectively handed market control to the Dangote Refinery, the country’s largest refining facility with a capacity of 650,000 barrels per day.
The report links the refinery’s growing dominance to rising pump prices, which have exceeded ₦1,300 per litre in several urban centres. Analysts say the lack of competing importers has reduced price moderation, leaving consumers exposed to market fluctuations.
The situation has been compounded by global oil market instability driven by geopolitical tensions involving the United States, Israel, and Iran. These developments have triggered supply disruptions and pushed crude prices upward, increasing the cost of refined petroleum products worldwide.
Lead economist Fiseha Gebregziabher said Nigeria should urgently reintroduce import permits for qualified marketers to improve supply dynamics. He argued that reopening the market would encourage competition, stabilize prices, and reduce the burden on consumers.
“Allowing more players into the market can help align domestic prices with global benchmarks while ensuring supply security,” the report stated.
Reactions to the recommendation have been mixed. Supporters of the Dangote Refinery highlight its role in reducing Nigeria’s reliance on imports and boosting exports to countries such as Ghana and South Africa, contributing to foreign exchange earnings.
However, labour unions and consumer groups have expressed concern over the rising cost of petrol, urging the government to implement measures to ease the impact on households and small businesses.
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The federal government has yet to issue an official response to the World Bank’s recommendation, leaving uncertainty over whether import licenses will be reinstated in the near term.
