The Centre for the Promotion of Private Enterprise (CPPE) has expressed strong reservations over the recent policy recommendation by the World Bank advocating increased importation of petroleum products and food as a solution to Nigeria’s supply-side constraints.
In a policy statement released on Monday, the CPPE described the recommendation as “deeply troubling” and misaligned with Nigeria’s current economic realities and reform trajectory. The organisation noted that at a time when the country is making measurable progress in stabilising its macroeconomic environment—evidenced by improving foreign reserves, moderating inflation, and a more stable exchange rate—policy priorities should focus on consolidating these gains rather than undermining them.
According to CPPE, Nigeria is gradually transitioning towards self-sufficiency in petroleum product supply, driven by significant private sector investments in domestic refining capacity. The organisation warned that encouraging increased importation at this stage could reverse these gains by worsening foreign exchange pressures, weakening local refining investments, and increasing vulnerability to global shocks.
“The pathway to sustainable energy security and economic resilience lies in strengthening domestic production capacity, not returning to import dependence,” the statement said.
The CPPE further emphasised that sustainable economic transformation must be anchored on industrialisation, value addition, and domestic productivity. It cautioned that import-driven solutions risk accelerating de-industrialisation, weakening the real sector, and undermining job creation in a country with a rapidly growing population.
Highlighting the structural challenges facing local producers, the organisation noted that Nigerian firms operate under significant constraints, including high energy costs, poor infrastructure, expensive financing, and multiple taxation. In such a context, it argued, positioning imports as competition is misleading, as it creates an uneven playing field between domestic producers and foreign firms operating in more supportive environments.
“This is not competition; it is structural imbalance,” CPPE stated, adding that such dynamics discourage local investment and perpetuate economic dependence.
The organisation also raised concerns about the risks associated with increased importation, including the potential influx of substandard petroleum products and the threat of dumping, which could undermine consumer protection and environmental standards.
On energy security, CPPE recalled Nigeria’s past dependence on imported petroleum products, which led to the collapse of local refining capacity, created a rent-seeking import regime, and imposed significant fiscal and foreign exchange burdens. It noted that recent developments in domestic refining demonstrate the country’s potential to achieve self-sufficiency if supported by the right policies.
“The current global geopolitical tensions have once again exposed the dangers of import dependence. Nigeria must prioritise the expansion of domestic refining capacity, not the issuance of more import licences,” the statement added.
The CPPE also rejected calls for increased food importation, warning that such a move would discourage local agricultural production, depress farmgate prices, and undermine rural livelihoods. It stressed that Nigeria’s food security strategy should focus on boosting domestic productivity, strengthening value chains, and improving market access.
Beyond sectoral concerns, the organisation highlighted broader macroeconomic risks associated with heavy import dependence, including pressure on the naira, depletion of external reserves, and heightened exposure to global market volatility.
The CPPE noted that many advanced economies are increasingly adopting protectionist policies to strengthen domestic industries and secure supply chains. It described it as paradoxical that developing economies like Nigeria are being advised to pursue import liberalisation at a time when developed nations are prioritising local production and economic resilience.
Instead, the organisation urged the World Bank to recalibrate its policy recommendations towards supporting industrialisation-driven reforms in Nigeria. These, it said, should include expanding domestic refining capacity, reducing production costs, strengthening manufacturing ecosystems, improving agricultural productivity, and promoting local content development.
In conclusion, the CPPE reiterated that import liberalisation is not a sustainable solution to Nigeria’s supply-side challenges. It called on policymakers to prioritise reforms that support a production-driven economy anchored on strong domestic industries, energy security, and agricultural resilience.
“Nigeria’s future lies in building a self-reliant and industrialised economy. Policies that deepen import dependence will only delay that objective,” the statement concluded.
