The Centre for the Promotion of Private Enterprise has warned against a World Bank proposal to expand the importation of petroleum products and food, cautioning that such a move could undermine Nigeria’s recent economic progress.
Speaking on Sunday, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, described the recommendation in the World Bank’s Nigerian Development Update as “deeply troubling and fundamentally misaligned with Nigeria’s current economic realities and reform trajectory.”
He said, “At a time when the country is making measurable progress in restoring macroeconomic stability, evidenced by improving foreign reserves, moderating inflation, a more stable exchange rate regime, and growing capacity for the export of refined petroleum products, the policy priority should be to consolidate these gains, not undermine them.”
Yusuf emphasised that Nigeria is moving toward self-sufficiency in petroleum supply through growing private investment in local refining, warning that a rise in imports could undermine the progress made so far.
He said, “Encouraging increased importation of petroleum products at this stage risks reversing hard-won gains. It would exacerbate foreign exchange pressures, weaken domestic refining investments, and heighten the economy’s vulnerability to external shocks.”
The CPPE boss added that sustainable economic growth should be driven by increased domestic production and industrialisation rather than a continued reliance on imports.
He said, “Sustainable economic transformation is anchored on production, value addition, and industrial capability, not import dependence. The suggestion that supply-side constraints can be addressed through increased imports runs counter to Nigeria’s long-term development aspirations.”
Highlighting the structural constraints facing local producers, Yusuf said high energy costs, inadequate infrastructure, and lending rates above 25 per cent have resulted in an uneven competitive environment for domestic businesses.
He said, “What is being presented as market competition is, in reality, a structural asymmetry that places domestic producers at a significant disadvantage. This is not a level playing field.”
On energy security, Yusuf cautioned that Nigeria’s previous dependence on imports contributed to the collapse of local refineries and imposed significant pressure on foreign exchange reserves.
He noted, “Nigeria needs expansion of domestic refining capacity, not more import licences for petroleum products. Encouraging importation at this stage would undermine investor confidence and reverse progress towards energy security.”
He also warned against excessive food imports, saying they could undermine local farmers and negatively impact rural livelihoods.
Yusuf said, “Import surges depress farmgate prices, discourage investment in agriculture, erode rural incomes, and undermine food system resilience.”
