The World Bank has called on the Nigerian government to reopen the petrol market to competition by reinstating import licences, warning that the current structure is fueling higher domestic prices.
In its latest Nigeria Development Update, the Washington-based lender noted that the suspension of petrol import licences since January 2026 has reduced competition, allowing prices to exceed import-parity levels.
According to the report, allowing qualified marketers to resume fuel imports would restore competition, reduce pricing distortions, and align domestic fuel prices more closely with global benchmarks. It added that a more competitive market would also enhance supply security by reducing reliance on a single refinery while supporting broader sourcing options.
The recommendation comes amid rising global oil prices, which have impacted Nigeria’s domestic fuel market. The report observed that the Dangote Refinery, currently the dominant supplier following the halt in import licences, raised its ex-depot petrol price to about ₦1,275 per litre as of March 23, 2026.
This figure, the World Bank noted, is approximately 12 percent higher than the estimated import-parity price of ₦1,122 per litre, highlighting the cost implications of limited competition in the market.
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The report further stressed that reinstating import licences would dismantle the emerging supply monopoly and help lower fuel costs for consumers, while maintaining the country’s long-term domestic refining objectives.
Meanwhile, reactions from Nigerians have remained mixed, with many expressing concern over the current market structure. Some stakeholders argue that restricting fuel imports has negatively affected traditional marketers, many of whom employ thousands of workers.
Others noted that Nigeria’s large population and energy demand may be difficult to sustain through a single refinery, warning that over-reliance on one supplier could pose risks to supply stability in the event of disruptions.
The development, as highlighted in a report by The Africa Report, underscores the growing debate over the future of Nigeria’s petroleum market and the balance between promoting local refining and ensuring competitive pricing for consumers.