WorldStage– The Manufacturers Association of Nigeria (MAN) has faulted the World Bank’s recommendation on reinstating petrol import licences, describing it as a recipe for deindustrialisation and economic retrogression.
MAN Director-General, Mr Segun Ajayi-Kadir in a statement issued on Friday said the association reviewed the April 2026 Nigeria Development Update by the World Bank and its subsequent clarification on the downstream petroleum sector.
He said while MAN acknowledged the bank’s position on the importance of national energy security, it strongly objected to the suggestion that reopening the country to imported Premium Motor Spirit (PMS) would curb inflation.
According to him, such a proposal is structurally flawed, counterproductive and detrimental to Nigeria’s industrialisation agenda.
“Suggesting that Nigeria should open its borders to imported PMS to solve inflationary pressure will perpetually constrain the country to exporting jobs and wealth, while importing poverty,” he said.
Ajayi-Kadir argued that Nigeria’s inflation was largely cost-push and driven by exchange rate volatility.
He noted that increased fuel importation would worsen pressure on foreign exchange (FX).
He said the move would trigger further depreciation of the naira, raise the cost of raw materials and machinery, and deepen inflation across sectors.
The MAN boss also warned that reliance on imported fuel would amount to subsidising foreign economies while undermining local refining capacity.
He described the halt in petrol import licences as a major structural shift capable of boosting domestic industry and retaining value within the economy.
Ajayi-Kadir added that dependence on imported fuel also exposed the country to global supply shocks, especially amid geopolitical tensions affecting energy markets.
He stressed that sustainable price stability could only be achieved through strengthened local refining capacity.
The MAN director-general, however, proposed alternative measures to address inflation and energy challenges.
He called for optimisation of the Federal Government’s naira-for-crude policy to ensure transparency and adequate crude supply to domestic refineries.
He also urged accelerated implementation of the Presidential Compressed Natural Gas (CNG) initiative, particularly through subsidised conversion of commercial and industrial transport fleets.
According to him, reducing logistics costs through alternative energy sources will significantly ease consumer goods inflation.
He further advocated targeted interventions for the productive sector, including removal of bottlenecks in the National Single Window platform, elimination of the four per cent Free On Board (FOB) levy, and provision of single-digit credit facilities for manufacturers.
Ajayi-Kadir also emphasised the need for investment in critical power infrastructure to reduce reliance on expensive liquid fuels for industrial production.
He warned that fuel importation would undermine recent gains recorded in domestic refining, including output from the Dangote Refinery.
“The path to inclusive growth; a stronger naira, job creation and lower inflation lies in protecting local industries and promoting domestic production,” he said.
Ajayi-Kadir urged the federal government to resist policy prescriptions that could weaken Nigeria’s manufacturing base.
He reiterated that Nigeria must prioritise producing what it consumes and reduce dependence on imports to achieve sustainable economic growth.
“We urge the Federal Government to be wary of neo-liberal prescriptions that could jeopardise or decimate our hard-won domestic manufacturing capabilities.
“The path to inclusive growth, a strong Naira, more jobs, single-digit inflation, and a prosperous Nigeria is surer when we protect our local industries.
“We should therefore reject any policy recommendation that would ultimately lead to the exportation of jobs and importation of poverty,” he said.
