The Centre for the Promotion of Private Enterprise (CPPE) has strongly criticised the World Bank’s recommendation that Nigeria should increase the importation of petroleum products and food, warning that such a move could reverse recent economic gains and weaken the country’s push for self-sufficiency.
In a statement issued on Sunday, CPPE Chief Executive Officer, Dr Muda Yusuf, described the proposal in the World Bank’s latest Nigeria Development Update as “deeply troubling” and not aligned with the country’s current economic direction.
“This recommendation is fundamentally misaligned with Nigeria’s current economic realities and reform trajectory,” Yusuf said.
He noted that the country is beginning to see improvements in foreign reserves, inflation, exchange rate stability, and domestic refining capacity.
He warned that encouraging more fuel imports at a time when Nigeria is expanding local refining could undermine progress already made.
“Encouraging increased importation of petroleum products at this stage risks reversing hard-won gains,” he said.
“It would exacerbate foreign exchange pressures, weaken domestic refining investments, and heighten the economy’s vulnerability to external shocks.”
The CPPE argued that policy should instead focus on strengthening local production, particularly in the downstream oil sector, where recent investments are beginning to boost domestic supply.
According to Yusuf, “the emphasis should be on expanding and stabilising domestic production capacity, ensuring reliable crude supply to local refineries, and fostering an enabling environment for investment.”
The group also rejected the idea that increased imports would solve Nigeria’s supply challenges, insisting that industrialisation, not import dependence, should remain the country’s priority.
“Sustainable economic transformation is anchored on production, value addition, and industrial capability—not import dependence,” Yusuf said.
He added that relying on imports risks weakening local industries and reducing job creation in an economy with a rapidly growing population.
CPPE further argued that the assumption that trade liberalisation automatically improves competition does not reflect Nigeria’s realities.
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Yusuf noted that local businesses operate under difficult conditions, including poor infrastructure, high energy costs, expensive loans, and multiple taxes.
“In this context, what is being presented as competition is, in reality, a structural imbalance,” he said. “Nigerian producers are competing with foreign firms that enjoy better infrastructure, lower costs, and, in many cases, government support.”
He warned that such uneven competition could discourage investment in local industries and increase dependence on imports.
The group also raised concerns about the risk of substandard fuel imports and dumping, which could harm consumers and undermine local refining efforts.
On energy security, CPPE stressed that Nigeria’s past reliance on imported fuel had high economic costs, including heavy pressure on foreign exchange and the collapse of domestic refining capacity.
Yusuf said recent progress in local refining shows the country can achieve self-sufficiency if the right policies are maintained.
“The policy direction is clear—Nigeria needs expansion of domestic refining capacity, not more import licences,” he said, adding that global tensions, particularly in the Middle East, highlight the dangers of depending on external supply.
The group extended its warning to food imports, arguing that excessive reliance on imported food could damage the agricultural sector.
Yusuf said increased imports could lower prices for local farmers, reduce investment in agriculture, and weaken rural incomes.
“Import surges depress farmgate prices, discourage investment, and undermine food system resilience,” he said, stressing that food security must be built on stronger local production.
CPPE also highlighted broader economic risks, warning that heavy import dependence could increase pressure on the naira, reduce foreign reserves, and expose Nigeria to global shocks.
These risks, it said, run counter to efforts to build a stable and resilient economy.
The group noted that many advanced economies are now moving towards protecting their local industries and strengthening supply chains, making the World Bank’s recommendation for Nigeria even more concerning.
“It is paradoxical that developing economies are being advised to adopt policies that advanced economies are moving away from,” Yusuf said.
He urged the World Bank to shift its policy advice towards supporting industrialisation, including boosting local refining, reducing production costs, strengthening manufacturing, and improving agricultural productivity.
CPPE insisted that import-led solutions are not sustainable and could weaken Nigeria’s long-term development.
“Nigeria’s growth must be driven by production, strong local industries, and self-reliance.
“Policymakers should reject import-dependent strategies and focus on building a resilient and industrialised economy,” Yusuf maintained.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
