Petrol Landing Cost: World Bank Sends Message to FG on Fuel Import, Marketers React
- World Bank urges Nigeria to reopen petrol imports to enhance competition and lower consumer prices
- IPMAN demands deregulation, arguing that limits on imports contradict the Petroleum Industry Act
- Experts caution against rushing imports, highlighting the need to balance consumer relief with refining independence
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The World Bank has reignited debate over Nigeria’s fuel market by calling on the Federal Government to immediately reopen petrol imports.
In its latest Nigeria Development Update, the bank argues that the suspension of import licences since January 2026 has stifled competition, driven prices above import-parity levels, and left consumers paying more than necessary.
Source: UGC
Imported petrol, the report claims, is currently about 12 per cent cheaper than fuel from the Dangote Petroleum Refinery.
The bank’s clear message: restore competition, reduce pricing distortions, and strengthen supply security by broadening sourcing options instead of relying on a single refinery.
World Bank’s case for competition
According to the report, titled “Nigeria’s Tomorrow Must Start Today,” allowing qualified marketers to resume imports would align domestic prices with global benchmarks while remaining consistent with long-term refining goals.
Greater market contestability, it says, would also cushion Nigeria against external shocks and support macroeconomic stability amid soaring global crude prices.
IPMAN demands full deregulation
Marketers have welcomed the recommendation with open arms. The Independent Petroleum Marketers Association of Nigeria (IPMAN) insists that restricting imports contradicts the spirit of the Petroleum Industry Act (PIA).
“If the government says it has removed the subsidy and the PIA enables competition, then blocking imports means you are already regulating the market,” said IPMAN National Publicity Secretary Chinedu Ukadike.
He argued that limiting licences shrinks the market and weakens competition.
Ukadike called on the government to withdraw completely from import licensing and let demand and supply determine prices.
He also questioned the sustainability of relying heavily on domestic supply, pointing to multiple price hikes by the Dangote Refinery in under four months.
“No one can sustain a business that way,” he said. “Allow imports so that competition dictates consumption and prices."
Experts warn against undermining local refining
Energy experts, however, offered a more cautious response. Principal Partner at The Energy Consulting Practice, Kelvin Emmanuel, described the World Bank’s position as “flawed” and disconnected from Nigerian market realities.
He explained that importers cannot land 50 ppm specification petrol below N1,750 per litre under current conditions, especially given ship-to-ship operations in Lome and the quality specifications required by Section 317(11) of the PIA.
Emmanuel linked the bank’s stance to global frustration: Nigeria’s new refining capacity has slashed imports of cheap, substandard fuels previously rejected in Europe by about 90 per cent.
“Nigerians must accept that in a truly deregulated market, prices will fluctuate with international crude prices and exchange rates,” he added.
He also highlighted cost pressures on local refiners, including paper-market crude pricing and delivery premiums of $19–$29 per barrel caused by geopolitical tensions, plus the lack of a structured domestic crude supply framework under Section 109 of the PIA.
According to a Punch report, Professor Emeritus of Petroleum Economics, Wumi Iledare, struck a balanced note.
In the short term, he said, more imports could stabilise supply and ease price spikes amid rising global energy costs and Middle East tensions. Yet he warned against undermining Nigeria’s hard-won refining progress.
“Nigeria is no longer where it used to be,” Iledare noted. “With new refining capacity coming on stream, the country stands at the edge of a historic transition, from fuel importer to self-sufficient producer and potential exporter.”
The road ahead
The fresh disagreement underscores a deeper tension: how to balance immediate relief for consumers with the long-term goal of energy independence.
While marketers push for unrestricted competition, experts urge the government to improve transparency in refining costs and pricing templates, protect local capacity, and avoid exposing the economy to volatile external shocks.
Source: Getty Images
As households continue to feel the pinch at the pump, the Federal Government faces a delicate choice: open the gates to imports for quicker relief, or stay the course on building a resilient domestic refining industry. The coming weeks will show which path it chooses.
5 vessels carrying fuel hit Nigerian ports
Legit.ng previously reported that Lagos has recorded the arrival of five vessels carrying petrol and diesel, offering a temporary boost amid ongoing worries about Nigeria’s fuel supply stability.
According to Punch, the shipping data from the Nigerian Ports Authority showed that the vessels delivered a combined 95,000 metric tonnes of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) to Apapa and Tincan Island ports over two days, between March 27 and March 29, 2026.
Details from the report show that a vessel, Hudson, discharged 22,000 metric tonnes of diesel at the New Oil Jetty in Apapa on March 27.
Source: Legit.ng
