The Manufacturers Association of Nigeria has urged the Federal Government to reject policy recommendations suggesting the reinstatement of petrol import licences, describing the proposal as flawed and harmful to Nigeria’s industrialisation drive.
The position follows the now-retracted recommendation by the World Bank in its April 2026 Nigeria Development Update. In a statement on Friday, Director-General of MAN, Segun Ajayi-Kadir, said the idea of reopening the country to petrol imports as a long-term solution to inflation was misguided.
“It is not, and should not be considered as an option. Suggesting that Nigeria should open its borders to imported Premium Motor Spirit to solve an inflationary crisis is structurally flawed, counterproductive, and highly detrimental to Nigeria’s industrialisation agenda,” Ajayi-Kadir said.
He warned that such a move would worsen Nigeria’s economic structure, noting that “in the long run, it will perpetually constrain Nigeria into the circle of exporting jobs and wealth, and importing poverty.”
MAN faulted the World Bank’s earlier position that suspending import licences reduced competition and contributed to rising fuel prices, arguing that the analysis ignored key macroeconomic realities.
Ajayi-Kadir said, “Promoting PMS imports means returning to the era of fiercely competing for scarce foreign exchange to fund foreign refineries. Such depletion of FX depreciates the naira further, and a weakened naira spikes the cost of importing critical raw materials and machinery for domestic manufacturers.”
He added that an increased reliance on imports would trigger broader inflationary pressures across sectors, extending beyond fuel pricing.
The MAN DG also warned that reinstating fuel importation would reverse gains recorded in Nigeria’s energy sector.
“For decades, Nigeria exported raw crude only to import refined products; effectively exporting our wealth, jobs, and capital to subsidise the manufacturing sectors of Europe and Asia. Reverting to importation is to succumb to economic sabotage,” Ajayi-Kadir said.
On energy security, he stressed that dependence on imported fuel would expose the country to global shocks. “Relying on imported fuel exposes Nigeria to damaging external supply shocks. True and lasting price stability can only be achieved through local production, where internal supply buffers insulate the domestic market,” he noted.
Instead of fuel importation, MAN proposed a set of alternative measures to tackle inflation and stabilise the energy market. Ajayi-Kadir called for improved implementation of the naira-for-crude policy, saying, “The Federal Government should mandate total transparency in the domestic pricing matrix and ensure that local refineries receive their full, unhindered daily crude quotas.”
He also urged the government to accelerate the adoption of alternative energy sources, particularly compressed natural gas. “The government should accelerate the Presidential CNG Initiative by heavily subsidising the conversion of commercial and industrial transport fleets. Shifting from PMS and diesel to locally sourced CNG is the ultimate inflation-buster,” he said.
The association further advocated targeted support for manufacturers, including easing trade bottlenecks and providing affordable credit. “We should not expand trade deficits through petroleum imports; we should focus on removing supply-side bottlenecks for manufacturers,” Ajayi-Kadir added.
He also emphasised the need to invest in power infrastructure to reduce dependence on costly fuels for industrial production. Ajayi-Kadir reiterated that Nigeria must prioritise local production over import dependence.
“It is not in our national interest to perpetuate avoidable dependence on imported fuel when we have domestic capacity to meet demand. We must strive to produce what we consume and consume what we produce,” he said.
He warned the government against adopting policies that could undermine local industries. “We urge the Federal Government to be wary of neo-liberal prescriptions that could jeopardise our hard-won domestic manufacturing capabilities. The path to inclusive growth and a strong naira is surer when we protect our local industries,” Ajayi-Kadir stated.
The MAN DG concluded with a strong caution: “We should therefore reject any policy recommendation that would ultimately lead to the exportation of jobs and importation of poverty.”
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