Economic policy group says unrestricted petroleum imports could weaken the naira, discourage local investment and reverse gains from domestic refining projects….
The Centre for the Promotion of Private Enterprise (CPPE) has cautioned against growing calls for unrestricted importation of petroleum products, warning that such a policy could derail Nigeria’s industrialisation efforts and weaken the country’s emerging refining capacity.
In a statement issued on May 24, 2026, the organisation said the debate surrounding fuel imports goes far beyond the oil sector and touches directly on Nigeria’s long-term economic survival, industrial growth and energy independence.
The statement, signed by CPPE Chief Executive Officer Muda Yusuf, argued that excessive dependence on imported goods has historically weakened local industries, destroyed jobs and exposed economies to external financial shocks.
According to the economic think tank, no country has achieved sustainable industrial growth by relying heavily on imports while neglecting domestic production.
The organisation recalled that Nigeria’s prolonged dependence on imported fuel created major economic distortions over the years, including severe pressure on foreign reserves, instability in the foreign exchange market, collapse of local refining infrastructure and massive fiscal leakages linked to fuel subsidy payments.
At the height of the subsidy regime, CPPE noted that Nigeria spent trillions of naira subsidising imported petroleum products while also committing more than $10 billion annually to fuel imports.
The group warned that reopening the door to unrestricted fuel importation could recreate the same economic vulnerabilities that previously triggered persistent forex crises and weakened the naira.
According to the organisation, economic self-reliance should not be confused with economic isolation, stressing that many leading global economies still protect strategic industries through tariffs, industrial policies and incentives designed to strengthen local production.
The CPPE cited countries such as the United States, China, India and several European nations as examples of economies that actively support domestic industries despite participating in global trade.
The organisation maintained that Nigeria must prioritise domestic refining capacity if it hopes to strengthen energy security, improve industrial competitiveness and reduce dependence on imported fuel.
It described the Dangote Refinery and ongoing investments in modular refineries as major milestones that should be strategically protected rather than undermined by policies encouraging unrestricted imports.
According to the CPPE, the path to healthy competition in the downstream sector lies in encouraging more local refining investments, not increasing import dependence.
The think tank also pushed back against claims suggesting that the Dangote Refinery poses a monopoly threat to the sector.
It described such arguments as simplistic and unfair, noting that the refinery neither prevented new investors from entering the market nor contributed to the collapse of state-owned refineries.
Instead, the group described the refinery as one of the most significant industrial investments ever undertaken on the African continent.
CPPE argued that large-scale industrial projects naturally command significant market share due to their operational capacity, economies of scale and cost advantages, adding that market dominance alone should not automatically be interpreted as monopoly abuse.
The organisation further noted that Nigerian manufacturers already operate under extremely difficult business conditions, including poor infrastructure, high borrowing costs, unstable electricity supply, multiple taxation and expensive logistics.
In contrast, it said foreign competitors often enjoy more supportive environments and lower production costs in their home countries.
The group warned that exposing local industries to unrestricted imports under such uneven conditions could accelerate deindustrialisation and discourage future investments in domestic production.
It pointed to the collapse of several Nigerian manufacturing sectors including tyre production, textiles and automobile assembly as evidence of the damaging effects of indiscriminate import liberalisation over the years.
CPPE also expressed concern over the implementation of the African Continental Free Trade Area (AfCFTA), warning that trade liberalisation without adequate local competitiveness could further weaken Nigerian industries.
On food imports, the organisation said Nigeria’s recent experience demonstrated how large-scale importation disrupted local agricultural value chains and discouraged investment in farming, even though it temporarily reduced prices for consumers.
The group warned against repeating the same mistakes in the refining sector, insisting that short-term gains from fuel imports should not come at the expense of long-term industrial development and economic stability.
According to the CPPE, Nigeria must make a clear decision on whether it wants to build a production-driven economy or remain trapped in import dependence.
The organisation stressed that countries that fail to protect and strengthen local production eventually weaken their currencies, lose industrial capacity and compromise their economic sovereignty.
