World Bank Urges Nigeria to Restore Petrol Competition as Dangote Dominates

The World Bank has called on the Nigerian government to reintroduce competition in the country’s petrol market, warning that recent policy changes have reduced market contestability and contributed to higher fuel costs.

The appeal comes amid growing concerns about inflation and the impact of rising energy prices on the economy.

In its April 2026 Nigeria Development Update, the Bank highlighted that the suspension of petrol import licences — initially intended to support domestic refining under the Petroleum Industry Act — has left the market heavily dominated by the Dangote Petroleum Refinery.

With imports curtailed, Dangote’s refinery has become the main source of petrol within Nigeria, significantly limiting alternative supply channels.

The report noted that imported petrol is still about 12 percent cheaper than domestically refined fuel, indicating pricing distortions caused by limited competition and rising global energy prices. This disparity feeds directly into transport and logistics costs, worsening inflationary pressures.

World Bank officials urged the government to reopen petrol import licences, arguing that doing so would restore competitive market forces, moderate prices, and reduce inflationary spill‑overs.

The Bank emphasised that a more market-oriented approach is essential to ensure sustainable supply and fair pricing for consumers.

Since its inauguration, the Dangote refinery — the largest single-train refinery in the world — has reshaped Nigeria’s fuel supply landscape, increasing both domestic availability and exports to other African countries.

While its output has eased some supply pressures, the refinery’s dominance, coupled with restricted imports, has concentrated market share and limited competitive pricing.

The Bank also warned that rising global crude oil prices, exacerbated by geopolitical tensions, could add roughly 3.1 percentage points to Nigeria’s headline inflation, further straining household budgets and economic stability.