Energy experts have criticised recent recommendations by the World Bank urging Nigeria to deepen fuel importation and fully liberalise its downstream petroleum sector, warning that the advice is ill‑timed, economically regressive and in direct violation of the Petroleum Industry Act (PIA).
An energy economist, Professor, Ken Ife, faulted the position during a televised interview on Nigeria’s economic outlook, noting that while parts of the World Bank’s latest Nigeria Development Update were analytically sound, its prescription on fuel importation threatens Nigeria’s strategic push for energy independence and local value addition.
“You cannot come to a country that is struggling, and which has just developed a vision of economic self‑reliance and then advise it to reverse course and return to fuel importation,” Ife said. “That kind of recommendation undermines everything Nigeria is trying to achieve.”
He stressed that the advice directly contradicts the Petroleum Industry Act, which mandates priority supply of domestic crude to local refiners under the Domestic Crude Obligation framework.
“The law is very clear. Domestic refining must come first. Advising Nigeria to abandon that path is not just against government policy; it is a clear violation of the PIA,” Ife stated.
The economist warned that increased fuel importation would leave Nigeria more vulnerable to global supply disruptions, accelerate foreign exchange depletion and discourage ongoing investments in local refining, particularly at a time when private sector participation is expanding capacity.
“We are on track to build refining capacity that will exceed domestic demand and position Nigeria as an energy exporter. How can anyone credibly suggest that we abandon this progress and return to reckless import dependence?” he asked.
Echoing similar concerns, another energy expert, Kelvin Emmanuel, also criticised the World Bank’s position, describing it as flawed and disconnected from prevailing market realities.
Speaking during a televised interview, Emmanuel disclosed that the World Bank had reportedly withdrawn the contested Nigeria Development Update from its website.
