The Centre for the Promotion of Private Enterprise (CPPE) has warned against what it described as growing calls for unrestricted importation of petroleum products, saying such a policy could undermine Nigeria’s industrialisation efforts and weaken domestic refining investments.
In a statement issued on Sunday, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, argued that excessive dependence on imports poses serious risks to Nigeria’s economic sovereignty, macroeconomic stability and industrial growth.
According to Yusuf, Nigeria’s previous reliance on imported petroleum products placed severe pressure on foreign reserves, weakened the naira, worsened foreign exchange illiquidity and contributed to the collapse of local refineries.
He noted that during the fuel subsidy era, the country spent trillions of naira subsidising imported fuel while also spending over $10 billion annually on petroleum imports.
He said the consequences included persistent exchange rate pressure, widening trade deficits, fiscal leakages, investor uncertainty and weak industrial competitiveness.
The CPPE stressed that no country achieves industrial prosperity through excessive import dependence, adding that successful economies globally support strategic sectors through protective industrial policies.
Citing countries such as the United States, China, India and members of the European Union, Yusuf said industrialised nations actively protect domestic industries through tariffs, subsidies and other policy interventions aimed at strengthening local production capacity.
The economic think tank maintained that Nigeria should prioritise domestic refining and support strategic investments such as the Dangote Refinery and emerging modular refineries across the country.
According to the CPPE, pushing for unrestricted fuel importation at a time when the country is expanding local refining capacity sends conflicting signals to investors and could discourage future industrial investments.
“The pathway to competition is not the promotion of imports. The pathway to competition is the encouragement of additional domestic refining investments,” Yusuf stated.
The organisation also defended fiscal protection measures for local refiners, noting that Nigeria already applies tariff and fiscal protections across several manufacturing sectors, including pharmaceuticals, textiles, cement, food processing and automobile assembly.
CPPE argued that local manufacturers operate under difficult conditions marked by poor infrastructure, high energy costs, multiple taxation, elevated interest rates and foreign exchange volatility, while foreign competitors often benefit from more supportive operating environments.
It warned that exposing domestic industries to unrestricted foreign competition under such conditions could accelerate deindustrialisation and job losses.
The group cited the collapse of several Nigerian industries, including tyre manufacturing companies such as Dunlop and Michelin, alongside textile mills, automobile assembly plants and pharmaceutical firms, as examples of the consequences of indiscriminate import liberalisation.
The CPPE further warned that the implementation of the African Continental Free Trade Area (AfCFTA) could become disruptive for Nigerian manufacturers unless urgent steps are taken to strengthen local production capacity and competitiveness.
On allegations of monopoly against the Dangote Refinery, Yusuf dismissed such claims as unfair and simplistic, arguing that the refinery’s scale should be seen as a competitive advantage rather than evidence of monopoly abuse.
He maintained that competition issues should be handled by regulatory institutions through existing competition laws rather than discouraging large-scale industrial investments.
The organisation also cautioned that continued dependence on imported petroleum products would export jobs, weaken local value chains and increase pressure on foreign reserves, while domestic refining would strengthen energy security, create jobs and support macroeconomic stability.
Drawing parallels with Nigeria’s recent food importation policies, CPPE said large-scale food imports disrupted local agricultural value chains and weakened incentives for domestic production despite temporarily moderating prices.
The group urged the government to pursue consistent industrial policies that support local production, reduce import dependence and strengthen domestic value chains.
According to Yusuf, Nigeria must decide whether to build a production-driven economy or remain dependent on consumption and imports.
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