The Centre for the Promotion of Private Enterprise (CPPE) has cautioned against recent policy recommendations by the World Bank urging Nigeria to increase the importation of petroleum products and food to address supply-side constraints.
In a statement issued on Sunday, CPPE described the proposal as “misaligned” with Nigeria’s current economic realities and reform trajectory, warning that such a move could undermine recent gains in macroeconomic stability.
The organisation noted that Nigeria has recorded improvements in key economic indicators, including foreign reserves, inflation trends, and exchange rate stability.
It added that growing domestic refining capacity and increasing exports of refined petroleum products signal a shift toward self-sufficiency.
CPPE argued that encouraging fuel imports at this stage could reverse these gains by increasing pressure on foreign exchange, weakening local refining investments, and exposing the economy to global shocks, especially amid ongoing geopolitical tensions affecting energy markets.
The group stressed that policy direction should instead prioritise expanding domestic production capacity, ensuring adequate crude supply to local refineries, and creating an enabling environment for downstream sector investments.
On industrial development, CPPE emphasised that sustainable economic growth depends on production and value addition rather than import dependence. It warned that import-driven solutions could accelerate de-industrialisation, weaken the manufacturing sector, and limit job creation in a growing labour market.
The think tank also highlighted structural challenges facing Nigerian producers, including poor infrastructure, high energy and logistics costs, elevated lending rates, and multiple taxation.
It said these conditions create an uneven playing field between local manufacturers and foreign competitors, making the notion of fair competition unrealistic.
Concerns were also raised about the quality of imported petroleum products and the risk of dumping, which could undermine local investments and pose risks to consumers and the environment.
On energy security, CPPE recalled Nigeria’s past reliance on imported fuel, which it said led to the collapse of domestic refining capacity and imposed significant fiscal and foreign exchange burdens.
It pointed to recent developments, including increased refining capacity, as evidence that the country can achieve self-sufficiency with the right policies.
The organisation further warned against excessive food imports, noting that they could depress farmgate prices, discourage agricultural investment, and weaken rural livelihoods. It called for a food security strategy anchored on boosting local productivity and strengthening agricultural value chains.
CPPE added that heavy import dependence could heighten pressure on the naira, deplete external reserves, and expose the economy to global supply disruptions, undermining long-term economic resilience.
It also observed that many advanced economies are shifting toward strategic protectionism, prioritising domestic production and supply chain resilience, and described it as contradictory for developing countries like Nigeria to be advised otherwise.
The group urged the World Bank to refocus its policy guidance on industrialisation-driven reforms, including support for domestic refining, reduction in production costs, strengthening of manufacturing ecosystems, and promotion of local content development.
“Import liberalisation is not a sustainable solution to Nigeria’s supply-side challenges,” the statement said, urging policymakers to adopt strategies that promote self-reliance, industrial growth, and economic resilience.
The statement was signed by Dr. Muda Yusuf, Chief Executive Officer of CPPE.
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