The Manufacturers Association of Nigeria (MAN) has criticised a recommendation by the World Bank to reinstate petrol import licences, warning that such a move could undermine Nigeria’s industrial growth.
In a statement issued in Lagos, MAN Director-General, Segun Ajayi-Kadir, said the association reviewed the World Bank’s April 2026 Nigeria Development Update and strongly disagreed with its suggestion that reopening fuel imports would help curb inflation.
Ajayi-Kadir argued that the proposal is fundamentally flawed and could reverse progress made in strengthening local industry. He warned that increasing reliance on imported Premium Motor Spirit (PMS) would strain foreign exchange, weaken the naira, and drive up the cost of raw materials and machinery.
According to him, Nigeria’s inflation is largely driven by cost pressures linked to exchange rate instability, and boosting fuel imports would only intensify these challenges.
He further noted that dependence on imported fuel would divert economic value abroad, weaken domestic refining capacity, and expose the country to global supply disruptions.
The MAN chief described the suspension of petrol import licences as a significant structural reform that supports local production and retains value within the economy. He cautioned that reversing the policy could undermine recent gains in domestic refining, including output from the Dangote Refinery.
As alternatives, Ajayi-Kadir called for improved implementation of government policies such as the naira-for-crude initiative to ensure steady supply to local refineries. He also urged faster rollout of the Presidential Compressed Natural Gas (CNG) programme, particularly through subsidised conversion of commercial vehicles to reduce transportation and logistics costs.
In addition, he advocated targeted support for manufacturers, including removal of trade bottlenecks, elimination of the four per cent Free On Board (FOB) levy, and access to low-interest financing.
He also stressed the need for greater investment in power infrastructure to reduce reliance on costly fuel sources for industrial operations.
Ajayi-Kadir maintained that sustainable economic growth depends on strengthening domestic production rather than increasing imports, urging the government to resist policy directions that could weaken Nigeria’s manufacturing base.