The Centre for the Promotion of Private Enterprise (CPPE), has strongly rejected recent recommendations by the World Bank advocating increased importation of petroleum products and food as a response to Nigeria’s supply-side constraints, warning that such a strategy could derail the country’s industrialisation agenda and weaken macroeconomic stability.
CPPE described the proposal as “deeply troubling” and misaligned with Nigeria’s current economic reform trajectory, stressing that the country is beginning to record measurable gains in macroeconomic stability, including improving foreign reserves, moderating inflation, and a more stable exchange rate regime.
The organisation argued that encouraging higher imports at this stage risks reversing these gains by intensifying pressure on foreign exchange, discouraging domestic investment, and increasing vulnerability to global shocks, particularly amid ongoing geopolitical tensions and volatility in international energy markets.
According to the CPPE, Nigeria is gradually transitioning towards self-sufficiency in petroleum products, driven by significant private investments in domestic refining capacity.
It noted that this progress should be consolidated through policies that support local production, enhance value addition, and strengthen industrial linkages, rather than resorting to import-dependent solutions.
“Import-driven strategies at this stage would undermine investor confidence in the domestic refining sector and reverse progress towards energy security,” the statement said, adding that priority should instead be placed on ensuring adequate crude supply to local refineries and creating an enabling environment for downstream investments.
The think tank further emphasised that sustainable economic transformation must be anchored on industrialisation, not import dependence.
It warned that increased reliance on imports could accelerate de-industrialisation, weaken the manufacturing sector, and limit job creation in an economy with a rapidly expanding labour force.
Highlighting structural constraints facing domestic producers, CPPE noted that Nigerian firms operate under significantly higher costs due to poor infrastructure, elevated energy prices, high lending rates, often exceeding 25 to 30 percent, and multiple taxation.
It argued that under such conditions, competition between imports and local production is inherently uneven.
“What is presented as competition is, in reality, structural asymmetry,” the group stated, pointing out that many foreign producers benefit from subsidies, efficient logistics systems, and lower financing costs in their home countries.
It warned that exposing domestic industries to such imbalances could discourage investment and entrench import dependence.
The CPPE also raised concerns about the potential influx of substandard petroleum products and the risk of dumping in the absence of strong regulatory safeguards, noting that this could undermine consumer protection, environmental standards, and the viability of local refining operations.
On energy security, the organisation recalled Nigeria’s historical dependence on imported petroleum products, which it said contributed to the collapse of local refineries, created a rent-seeking import regime, and imposed an annual import burden estimated at between $10bn and $15bn at its peak.
It noted that recent progress in domestic refining demonstrates Nigeria’s capacity to meet its own fuel needs, stressing that expanding local refining capacity remains the most sustainable path to energy security and economic resilience.
The CPPE similarly cautioned against increased food imports, arguing that such a move would depress farmgate prices, discourage agricultural investment, and weaken rural livelihoods.
It maintained that Nigeria’s food security strategy should prioritise boosting domestic productivity, strengthening value chains, and improving market access.
Beyond sectoral concerns, the think tank warned of broader macroeconomic risks associated with heavy import dependence, including pressure on the naira, depletion of external reserves, and increased exposure to global commodity shocks.
It also pointed to a growing global shift towards strategic protectionism, noting that many advanced economies are prioritising domestic production, supply chain resilience, and local content development.
Against this backdrop, CPPE described the World Bank’s recommendation as inconsistent with emerging global policy trends.
The organisation called on the World Bank to recalibrate its policy advisory towards supporting industrialisation-driven reforms in Nigeria.
It outlined key priorities to include expanding domestic refining capacity, reducing production costs, strengthening manufacturing ecosystems, enhancing agricultural productivity, and addressing structural bottlenecks affecting private sector growth.
Chief Executive Officer of CPPE, Muda Yusuf, reiterated that Nigeria’s long-term development must be anchored on a production-driven growth model characterised by strong domestic industries, competitive manufacturing, and robust agricultural systems.
He stressed that import liberalisation is not a sustainable solution to supply-side challenges, warning that it could deepen structural vulnerabilities and undermine the country’s economic sovereignty.
“The focus should be on building a resilient, self-reliant and industrialised economy, not a return to import dependence,” he said.
CPPE Rejects World Bank Call For Increased Fuel, Food Imports is first published on The Whistler Newspaper
