Energy economist, Ken Ife, has pushed back against calls by the World Bank for Nigeria to expand fuel imports and fully liberalise its downstream petroleum sector.
Speaking on Nigeria’s economic outlook during a televised interview, Ife described the recommendation as out of step with the country’s current direction and legal framework.
“You cannot come to a country that is struggling and has suddenly developed a vision of becoming economically independent, and then advise it to reverse course and start importing again,” he said.
He argued that the position conflicts with the Petroleum Industry Act, which mandates priority for domestic crude supply to local refiners.
“The law is very clear; priority must be given to local refining capacity. Advising Nigeria to abandon that and return to import dependence is not only against government policy but against the PIA law itself,” Ife added.
According to him, increasing reliance on imports could expose Nigeria to external shocks and weaken ongoing investments in local refining, especially as private players scale up operations.
“We are building refining capacity that will exceed local demand and position Nigeria as an energy exporter. How can anyone recommend that we abandon this and return to reckless importation?” he queried.
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Ife also questioned the basis of the recommendation, saying it lacked supporting evidence.
“This conclusion was parachuted into an otherwise strong report. There is no evidence to support telling Nigeria to depend on imports when major refining countries are restricting exports,” he said.
On rising fuel costs, he maintained that pricing pressures are largely driven by policy gaps rather than supply shortages.
“Fuel price pressures in Nigeria are largely contrived. If local refiners are given crude at the terms stipulated by law, they will stabilise prices and reduce volatility,” he explained.
He further warned against funding social safety nets through borrowing, insisting such measures fall outside Nigeria’s fiscal guidelines.
“Social safety nets are necessary, but you don’t borrow to share money. If support is needed, let it come as grants, not loans,” he said.
The World Bank’s position has continued to generate debate, with critics warning it could slow Nigeria’s push toward local refining and greater energy self-sufficiency.