Reopening Fuel Imports Is Not Reform

The World Bank's recent call for Nigeria to reopen petrol imports is a deeply flawed prescription that Nigeria must reject outright. This is not a path to genuine economic success, but a dangerous regression disguised in technocratic jargon. For decades, Nigeria has been trapped by similar advice, leading to confusion and ultimately chaos. The World Bank's persistent adherence to neoliberal globalization doctrines, which have been increasingly challenged globally by economic nationalism, is particularly concerning. It is telling that such advice is never offered to developed nations or even other emerging economies like China or Brazil. Nigeria's experience with FX liberalization and fuel subsidy removal, based on previous World Bank recommendations, has resulted in severe economic hardship and social strain due to a lack of robust domestic production capacity. This history makes the current recommendation to flood the market with foreign petrol not just contradictory, but unacceptable.

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The World Bank argument that Nigeria should reopen petrol imports is unacceptable, argues DAN D. KUNLE

The history of fuel importation in Nigeria is a litany of dysfunction: chronic scarcity, inflated costs, a corrupt subsidy regime, and persistent foreign exchange crises. Every imported liter drained national reserves, and global price spikes inflicted immediate pain. Import dependence was never a temporary inconvenience; it was a fundamental structural failure that I have extensively analyzed and criticized from my front-row experience in the oil and gas sector. Despite the futility of past reform efforts, Nigeria now stands at the cusp of a different future, thanks to the transformative impact of the Dangote Petroleum Refinery.

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This recommendation is not reform; it is regression. It is unacceptable and should not even be entertained by Nigeria.

This homegrown refinery is already reshaping the nation's energy landscape. Since the curtailment of fuel imports, it has become the primary source of petrol, significantly boosting domestic supply and enabling exports across Africa. The refinery's output is not theoretical; it is a measurable reality, producing millions of liters of high-quality PMS monthly. This domestic capacity is a testament to Nigeria's potential and a powerful argument against returning to the failed import model. Nigeria must leverage this newfound strength, prioritize domestic production, and firmly resist the World Bank's outdated and detrimental advice. Reopening petrol imports is not reform; it is a surrender to the very dependencies that have historically weakened our economy.

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Nigeria heeded the World Bank’s calls for FX liberalization and the removal of fuel subsidies, yet the consequences have been severe: rising poverty, social strain, and economic hardship, largely because the country lacks strong domestic production capacity.