Group warns increased fuel and food imports could undermine refining gains, weaken naira and stall industrialisation…..
The Centre for the Promotion of Private Enterprise has raised strong objections to a policy recommendation by the World Bank Group advocating increased importation of petroleum products and food to address Nigeria’s supply-side constraints.
In a detailed statement, the Chief Executive Officer of CPPE, Muda Yusuf, described the proposal as “deeply troubling” and out of sync with Nigeria’s current economic direction and reform progress.
The group argued that Nigeria is beginning to see improvements in key macroeconomic indicators, including foreign reserves, inflation trends and exchange rate stability, alongside growing domestic refining capacity. It warned that encouraging imports at this stage could reverse these gains.
According to CPPE, Nigeria is gradually moving towards self-sufficiency in petroleum products, driven by private sector investments in local refining. It said policy efforts should focus on strengthening this momentum rather than reopening the economy to increased import dependence.
The organisation cautioned that higher imports of petroleum products would increase demand for foreign exchange, weaken domestic refining investments and expose the economy to external shocks, particularly amid ongoing geopolitical tensions and global energy market volatility.
It stressed that sustainable energy security lies in expanding local refining capacity, ensuring steady crude supply to domestic refineries and creating an enabling environment for downstream investments.
On industrialisation, CPPE maintained that long-term economic transformation must be anchored on production, value addition and a strong manufacturing base. It warned that import-driven strategies risk accelerating de-industrialisation, weakening the real sector and limiting job creation in an economy with a rapidly growing population.
The group also challenged assumptions that trade liberalisation would automatically enhance competition, noting that Nigerian businesses operate under significant structural constraints, including poor infrastructure, high energy costs, expensive financing and multiple taxes.
It said these conditions create an uneven playing field between domestic producers and foreign competitors, many of whom benefit from subsidies, better infrastructure and lower borrowing costs.
Beyond structural concerns, CPPE raised issues about the quality of imported petroleum products and the risk of dumping, warning that weak regulatory safeguards could expose the market to substandard products and undermine local investments.
The organisation pointed to Nigeria’s past reliance on fuel imports, which it said contributed to the collapse of domestic refining, encouraged rent-seeking behaviour and imposed an annual import burden of up to $10–15 billion at its peak.
Recent developments in domestic refining, including large-scale private investments, demonstrate that the country can achieve energy self-sufficiency if supported by the right policies, it added.
On agriculture, CPPE warned that increased food imports could depress farmgate prices, discourage investment, reduce rural incomes and weaken food system resilience. It said Nigeria’s food security strategy should prioritise boosting local production, improving value chains and expanding market access for farmers.
The group further highlighted the macroeconomic risks associated with heavy import dependence, including pressure on the naira, depletion of foreign reserves, and increased vulnerability to global supply disruptions.
It also noted a growing global shift towards strategic protectionism, with advanced economies increasingly prioritising domestic production, supply chain resilience and local industry support. Against this backdrop, CPPE said it was concerning that developing countries are being advised to adopt policies that advanced economies are moving away from.
Instead, the organisation urged the World Bank to refocus its policy advice on industrialisation-driven reforms. It called for targeted interventions to reduce production costs, strengthen manufacturing ecosystems, expand refining capacity, improve agricultural productivity and address structural bottlenecks limiting private sector growth.
CPPE concluded that import liberalisation is not a sustainable solution to Nigeria’s economic challenges, warning that it could deepen structural weaknesses and increase exposure to external shocks.
The group urged policymakers to prioritise a production-driven growth strategy built on strong domestic refining, competitive manufacturing, robust agriculture and improved energy and food security.
