The World Bank has clarified that its recommendation for Nigeria to allow imports of Premium Motor Spirit, PMS, should be seen as a medium-term reform path rather than an immediate policy prescription, stressing that any move toward a more competitive petrol market must be carefully sequenced to avoid jeopardising fuel supply and national energy security. The clarification came after the Bank’s April 2026 Nigeria Development Update, released on April 7, argued that restoring competition in the PMS market could help lower prices and reduce inflationary pressure.
In a statement issued on April 9, the World Bank said the report’s recommendation to reopen PMS imports had to be understood in the context of current global energy disruptions, which have pushed many countries to prioritise supply security. It said that over time, moving toward a competitive retail market for petrol remained an important policy direction, but one that required “a well-sequenced implementation strategy” to guarantee product quality, standards and stable supply. The institution added that, in Nigeria’s case, the immediate policy priority should be targeted support for vulnerable citizens through existing social safety-net systems.
The original report had attracted attention because it said imported petrol was effectively cheaper than supply from the Dangote Petroleum Refinery, now the dominant source of refined PMS after import licences were no longer being issued in early 2026. The World Bank said Dangote’s ex-depot petrol price had risen to about N1,275 per litre as of March 23, compared with an estimated import-parity price of around N1,122 per litre, implying a cost gap of roughly 12%. In the report’s policy slide deck, the Bank explicitly listed “Restore PMS competition” and “Reopen imports, reduce prices” among its market-functioning recommendations.
The Bank also warned that global oil market volatility, amplified by conflict in the Middle East, could worsen Nigeria’s inflation outlook. Reuters reported on April 7 that the World Bank expects Nigeria’s economy to keep growing in 2026 but sees renewed inflation pressure from the war-related spike in energy costs. In the report, the Bank said oil prices at about $80 per barrel could add around 3.1 percentage points to headline inflation under a full pass-through scenario, because higher fuel and electricity prices would ripple through transport and logistics costs.
The report itself remains accessible through World Bank document channels, even after social media claims that it had been removed from parts of the Bank’s website. What is clear from the Bank’s own clarification is that it has not withdrawn the core argument for greater competition in Nigeria’s petrol market. Rather, it has tried to place that recommendation within a more cautious framework: protect supply first, shield the poorest households, and only then move toward a fully competitive PMS regime.
