The Manufacturers Association of Nigeria (MAN) has rejected the World Bank’s recommendation to reinstate petrol import licences, warning that such a move could trigger deindustrialisation and economic setbacks.
This position was made known by MAN Director-General, Segun Ajayi-Kadir, in a statement issued on Friday in Lagos.
The reaction follows the World Bank’s earlier recommendation urging Nigeria to sustain the importation of Premium Motor Spirit (PMS) to stabilise fuel supply.
Though the report was later removed from its website and replaced with a clarification urging a reassessment in light of evolving global energy dynamics, it is still generating a reaction.
What MAN is saying
The association said it reviewed the World Bank’s April 2026 Nigeria Development Update and its subsequent clarification on the downstream petroleum sector.
- “Suggesting that Nigeria should open its borders to imported PMS to solve inflationary pressure will perpetually constrain the country to exporting jobs and wealth, while importing poverty.”
MAN acknowledged the importance of energy security but strongly opposed increased fuel importation as a solution to inflation.
It described the recommendation as structurally flawed, counterproductive, and harmful to Nigeria’s industrialisation agenda. The group warned that increased imports would heighten foreign exchange pressure, weaken the naira, and raise production costs.
Ajayi-Kadir maintained that Nigeria’s inflation is largely cost-push, driven by exchange rate volatility rather than demand factors.
Get up to speed
The World Bank had initially suggested continued fuel imports alongside gradual reforms in the downstream petroleum sector.
- The April 2026 report recommended maintaining PMS imports to stabilise supply.
- The report was later removed and replaced with a clarification reflecting evolving global energy dynamics.
- The World Bank noted that global energy volatility makes import-dependent policies less suitable.
It also emphasised the need for carefully sequenced reforms to protect consumers while improving market efficiency.
The recommendation has since sparked reactions from key stakeholders in Nigeria’s economic space.
More insights
MAN warned that reliance on imported fuel could undermine domestic refining capacity and expose Nigeria to external shocks.
- The association said fuel imports would amount to subsidising foreign economies at the expense of local industry.
- It noted that increased imports could worsen exposure to global supply disruptions, especially amid geopolitical tensions.
- Ajayi-Kadir stressed that strengthening local refining capacity is critical for achieving sustainable price stability.
- He cautioned that fuel importation could erode recent gains, including output from the Dangote Refinery.
MAN also proposed alternative solutions, including optimising the naira-for-crude policy, accelerating the Compressed Natural Gas (CNG) initiative, and addressing structural bottlenecks affecting manufacturers.
What you should know
The debate over fuel importation comes amid broader concerns about Nigeria’s economic direction and reform priorities.
- The Centre for the Promotion of Private Enterprise (CPPE) has also raised concerns over similar World Bank recommendations.
- CPPE warned that increased importation of petroleum products and food could undermine Nigeria’s push for self-sufficiency. It argued that recent macroeconomic gains and growing domestic refining capacity should be strengthened.
- Stakeholders continue to call for policies that support local production and reduce import dependence.
The ongoing discourse highlights the tension between short-term supply stabilisation and long-term industrial growth in Nigeria’s energy sector.
