The World Bank has called on Nigeria to restore petrol import licenses and ease trade restrictions, warning that current policies could trigger fresh inflationary pressure.
The organization, in its most recent Nigeria Development Update, highlighted tightening fuel supply and rising global oil prices as major threats to price stability.
It was observed that restricted downstream competition has driven fuel costs above import parity, thereby raising expenses throughout the economy.
Petrol costs per liter as of March 2026 were around N1,275, exceeding the estimated import standard of approximately N1,122, thereby underscoring the effect of limited supply.
The report cautioned that the pressure might quickly extend as energy prices directly translate into inflation and indirectly influence transportation and food costs.
The News Chronicle understands that the proposal to allow import licenses is intended to bring competition back into the fuel industry, which might lower costs and lessen the pressure on consumers and companies already struggling with exorbitant prices.
To boost supply and lower production costs beyond fuel costs, the World Bank recommended reducing import tariffs and removing limits on key commodities, namely food and industrial supplies. It also recommended replacing some customs taxes with direct government financing to help with transaction expenses.
Structural constraints in manufacturing and agriculture still restrict production even if Nigeria has shown some progress in oil sector growth and inflation numbers, therefore questioning the sustainability of recent gains.
