Manufacturers urge government to prioritise local refining and alternative energy over renewed petrol imports…..
The Manufacturers Association of Nigeria has called on the Federal Government to firmly reject any move to reinstate petrol import licences, warning that such a policy would undermine Nigeria’s long-term industrial ambitions.
The stance follows a now-withdrawn recommendation by the World Bank in its April 2026 Nigeria Development Update, which had suggested reopening petrol imports as a way to ease inflationary pressure.
In a statement released Friday, MAN Director-General Segun Ajayi-Kadir described the proposal as fundamentally flawed, arguing that relying on imported Premium Motor Spirit (PMS) would do more harm than good.
“It is not, and should not be considered as an option,” he said, stressing that such a move would be “structurally flawed, counterproductive, and highly detrimental to Nigeria’s industrialisation agenda.”
According to MAN, reopening fuel imports would deepen existing economic vulnerabilities by increasing competition for scarce foreign exchange, further weakening the naira and driving up production costs for manufacturers.
Ajayi-Kadir warned that the long-term implications could be severe. “It will perpetually constrain Nigeria into the cycle of exporting jobs and wealth, while importing poverty,” he said.
The association also challenged the World Bank’s earlier position that limiting import licences had reduced competition and contributed to rising fuel prices. MAN argued that the analysis overlooked broader macroeconomic realities, particularly the pressure on foreign exchange and its ripple effects across the economy.
A return to large-scale fuel imports, the group noted, would revive an old pattern where Nigeria exports crude oil but depends on foreign refineries for finished products effectively transferring economic value and industrial growth abroad.
“For decades, Nigeria exported raw crude only to import refined products, subsidising manufacturing sectors in Europe and Asia,” Ajayi-Kadir said. “Reverting to that model would amount to economic sabotage.”
On energy security, MAN cautioned that reliance on imported fuel would expose the country to global supply shocks and price volatility. It argued that sustainable price stability can only come from strengthening domestic refining capacity and building internal supply buffers.
Rather than reopening imports, the association proposed a series of alternatives aimed at stabilising prices and boosting local industry.
Among its key recommendations is stricter implementation of the naira-for-crude policy to ensure transparency and guarantee that local refineries receive adequate crude supply. MAN also urged the government to accelerate investment in alternative energy sources, particularly compressed natural gas, as a cheaper and more sustainable option for transport and industry.
In addition, the group called for targeted support for manufacturers, including easier access to credit, reduced trade bottlenecks, and improved infrastructure especially in the power sector, where high energy costs continue to weigh on production.
Ajayi-Kadir emphasized that Nigeria’s economic future depends on reducing import dependence and strengthening domestic capacity.
“It is not in our national interest to rely on imported fuel when we have the potential to meet demand locally,” he said. “We must produce what we consume and consume what we produce.”
He also warned policymakers against adopting external recommendations that could weaken local industries, urging a more cautious approach to economic reforms.
“The path to inclusive growth and a stronger naira lies in protecting and empowering domestic manufacturing,” he added.
The MAN chief concluded with a stark warning: any policy that encourages fuel importation risks reversing hard-won gains and entrenching a cycle of economic dependency Nigeria can ill afford.
