By Davour Pius
The Manufacturers Association of Nigeria (MAN) has criticised the World Bank over its recommendation that Nigeria should sustain petrol imports, warning that the policy could undermine local industry and accelerate deindustrialisation.
In a statement at the weekend, MAN said continued reliance on imported petroleum products would worsen foreign exchange pressures, raise production costs and weaken Nigeria’s industrial base, particularly at a time manufacturers are already grappling with multiple headwinds.
Director-General of MAN, Segun Ajayi-Kadir, said the recommendation runs counter to Nigeria’s long-term economic interests, especially efforts to promote local refining and reduce import dependence.
“Sustaining petrol imports as a policy direction could have adverse implications for domestic production and industrial growth. It would continue to expose the economy to external shocks and intensify pressure on the naira,” he said.
Ajayi-Kadir argued that Nigeria must prioritise domestic refining capacity to support industrialisation, create jobs and conserve scarce foreign exchange, noting that dependence on imports limits value addition within the economy.
The World Bank had reportedly advised that maintaining fuel imports could help stabilise supply in the short term, particularly in the wake of subsidy removal and ongoing market adjustments.
However, MAN warned that such an approach, if prolonged, could discourage investment in local refining infrastructure and weaken backward integration across the petroleum value chain.
Industry operators said high energy costs remain a major constraint for manufacturers, with many firms relying on diesel and other fuels to power operations amid unreliable electricity supply.
They noted that continued import dependence could further drive up energy costs due to exchange rate volatility, thereby eroding competitiveness and forcing some manufacturers to scale down production or shut operations.
A financial analyst, Johnson Chukwu, said the concerns raised by MAN highlight the broader implications of energy policy on industrial growth.
“Energy is a critical input in manufacturing. If the cost remains high and volatile due to import dependence, it will continue to affect output, pricing and overall competitiveness of the sector,” he said.
Stakeholders also stressed the need for a coordinated policy framework that balances short-term supply stability with long-term self-sufficiency in refining.
They argued that while imports may be necessary in the interim, the focus should remain on building local capacity, improving infrastructure and creating incentives for investment in the downstream sector.
MAN maintained that Nigeria’s path to sustainable economic growth lies in strengthening domestic production capabilities, warning that failure to do so could deepen the country’s dependence on imports and undermine industrial development.
