By Newsshelve Correspondent.
In a significant intervention that challenges decades of trade liberalisation policy, the Centre for the Promotion of Private Enterprise (CPPE) has issued a compelling policy brief advocating for a framework of “Strategic Protectionism” as the indispensable engine for Nigeria’s long-term industrialisation.
The brief, authored by CPPE Director/CEO Dr. Muda Yusuf, argues that global and historical evidence overwhelmingly demonstrates that no nation has achieved industrial maturity and national prosperity through the unbridled exposure of its nascent industries to international competition.
The core of the CPPE’s proposal is a calibrated and measured policy approach designed to safeguard domestic and emerging industries.
This move, they contend, is crucial not merely for economic growth but also for job creation, foreign exchange conservation, and the restoration of national economic sovereignty.
The policy brief opens with a stark assessment of Nigeria’s current economic condition, stating unequivocally that industrialisation is paramount to achieving long-term economic stability and transformation.
The CPPE’s position is a direct critique of the import-dependent economy that has taken root over the past few decades.
“Nigeria’s excessive dependence on imports has fundamentally weakened its productive base, eroded the competitiveness of local manufacturers, and made the entire economy acutely vulnerable to external shocks,” the report asserts.
This chronic deindustrialisation, the CPPE argues, is a direct consequence of inadequate support and the absence of effective, policy-driven protection for local producers.
To buttress its argument, the CPPE draws heavily on the industrial history of successful developing and developed economies.
The brief meticulously references the Asian Tigers; China, South Korea, India, and Malaysia—all of which built their formidable industrial strength on a foundation of inward-looking strategies during their formative decades.
These nations deliberately protected infant industries, implemented strict local content requirements, and systematically developed domestic value chains before gradually and strategically opening up to the rigours of global competition.
Furthermore, the CPPE points to recent actions by major global economies, noting that even the United States, the world’s largest economy and a long-time advocate of free trade, has recently adopted protectionist industrial policies, such as significant subsidies and tax credits for domestic manufacturing and technology, to strengthen its own manufacturing base and secure strategic supply chains.
The CPPE thus frames strategic protectionism not as an archaic, isolationist doctrine, but as a proven, pragmatic, and globally accepted pre-requisite for industrial take-off in a developing economy.
It clarifies that this approach is not economic isolation or an attempt to create monopolies, but a “self-strengthening strategy” to ensure domestic capacity reaches a point of scale and efficiency before confronting global giants.
A significant portion of the CPPE’s brief is dedicated to the oil and gas sector, which it describes as the most compelling example of Nigeria’s industrial policy failure. The prolonged dependence on importing refined petroleum products has inflicted immense and sustained costs on the national economy.
“Decades of refined product importation have acted as a massive drain on foreign reserves, critically weakened fiscal stability, and ultimately eroded economic sovereignty,” the brief states.
The policy failure in this sector has discouraged local investment and contributed to the collapse of domestic refining capacity.
Against this backdrop, the CPPE enthusiastically welcomes the recent imposition of a 15% import duty on refined petroleum products (petrol and diesel).
The brief describes this tariff as a “progressive and corrective measure” and a “welcome development” that signals a necessary shift in government thinking.
This modest level of protection, the CPPE argues, will provide the crucial policy support needed for local players to thrive. It will specifically benefit the Dangote Refinery, which requires a stable local market to justify its massive investment.
The policy will as benefit the NNPCL refineries undergoing rehabilitation and the growing network of emerging modular refineries.
The ultimate goal, according to the CPPE, is to restore Nigeria’s domestic refining capacity, which will in turn significantly reduce the acute foreign exchange exposure currently plaguing the economy and contributing to the volatility of the Naira.
The CPPE brief challenges the belief that protectionism stifles innovation and growth, offering clear examples from Nigeria’s own industrial history where structured protection has led to transformative outcomes.
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