The World Bank has urged the Nigerian government to reopen the petrol market to competition by reinstating import licences in an effort to reduce the inflationary pressures caused by the fallout of the Middle East conflict.
In its latest Nigeria Development Update released , the Washington-based lender says the suspension of petrol import licences since January 2026 “has reduced competition, allowing prices to exceed import-parity levels”.
Word Bank further says “Allowing qualified marketers to resume imports would restore competition, reduce pricing distortions and better align domestic prices with global benchmarks,” it says.
“Greater market contestability would also strengthen supply security by reducing reliance on a single refinery and broadening sourcing options, while remaining consistent with domestic refining objectives.”
The World Bank recommends reinstating petrol import licences to dismantle a supply monopoly, aiming to lower domestic fuel costs that currently sit 12% above global benchmarks.
“Allowing qualified marketers to resume imports would restore competition, reduce pricing distortions and better align domestic prices with global benchmarks,” it says.
“Greater market contestability would also strengthen supply security by reducing reliance on a single refinery and broadening sourcing options, while remaining consistent with domestic refining objectives.”
The World Bank points out that following the recent surge in global oil prices, the Dangote refinery – the main supplier of refined petrol after the regulator ceased issuing import licences in early 2026 – raised its ex-depot petrol price to about ₦1,275 ($0.92) per litre as of 23 March 2026.
That compares to an estimated import-parity price of around ₦1,122 per litre, implying a cost differential of roughly 12%, according to the report.
On 13 March, The Africa Report reported that the battle for survival among Nigeria’s traditional fuel importers had intensified in the first quarter of 2026 following the non-issuance of petrol import licence .
With the Africa report on the World Bank’s stand on Nigeria’s petroleum market, Nigerians continued to express their mixed feelings, noting that other company owners have staff to pay, they were not given the opportunity to import, Nigeria is a big country and a single company and refinery cannot supply sufficient fuel to the teeming millions of Nigerians. It is the nation’s economy; it cannot be handled by a single individual, and if there is a problem, he cannot handle it alone.
