Nigeria's Fuel Import Dependency Costs $15 Billion Annually

The Centre for the Promotion of Private Enterprise (CPPE) highlighted that Nigeria's heavy reliance on imported fuel incurs an annual cost of $15 billion, significantly weakening the economy and draining foreign exchange reserves. Dr.

Muda Yusuf, the Chief Executive of CPPE, criticized a recent World Bank recommendation to increase fuel imports, describing it as deeply troubling. The World Bank's April 2026 Nigeria Development Update acknowledged improvements in Nigeria's macroeconomic stability but noted that households continue to suffer from high inflation.

The CPPE argued that the import regime fosters rent-seeking behavior and structural inefficiencies, leaving Nigeria vulnerable to global energy shocks. They emphasized the importance of transitioning towards local sufficiency in petroleum supply through private sector investment and supportive policies.

The CPPE warned that a return to heavy fuel imports would exacerbate foreign exchange pressures and discourage local investment in refining, ultimately heightening the economy's vulnerability to external shocks.