The World Bank has removed its Nigeria Development Update report from its website after initially advising the Federal Government to sustain the importation of Premium Motor Spirit (PMS) to stabilise fuel supply.
The April 2026 report had recommended continued fuel imports alongside a gradual transition to a competitive downstream market. However, checks revealed the report was no longer available on the bank’s website.
In a subsequent statement, the World Bank indicated that such recommendations may no longer fully apply, citing evolving global energy dynamics.
World Bank Clarifies Stance on Fuel Imports
The World Bank clarified its position, highlighting the need to balance policy recommendations with global energy realities. The bank stated, “Given current global energy supply disruptions, such a recommendation may run counter to efforts that countries around the world are undertaking to ensure their energy and national security.”
The institution further emphasized, “In the case of Nigeria, the focus should be to provide targeted support to the most vulnerable people through their well-functioning social safety net system, and the World Bank Group stands ready to step up its existing support.”
Regarding the long-term outlook, the bank noted, “Over time, transitioning toward a competitive retail market for Premium Motor Spirit is an important policy direction that requires a well-sequenced implementation strategy that guarantees the quality and standards of all petroleum products.” The bank also recognized the efforts of the Federal Government and the private sector in safeguarding fuel supply to protect consumers and businesses.
The institution emphasized that while reforms are necessary, they must be carefully implemented to avoid unintended consequences for consumers.
Nigeria's Downstream Sector Reforms
Nigeria’s downstream petroleum sector has undergone significant reforms in recent years, particularly following the removal of fuel subsidies. This policy shift has exposed domestic fuel prices to global market fluctuations.
Efforts are ongoing to improve local refining capacity, though imports remain critical to meeting demand. Global geopolitical tensions have further complicated energy supply chains, influencing policy direction. These developments have made fuel supply stability and pricing a key concern for both policymakers and consumers.
