ABUJA, Nigeria (VOICE OF NAIJA)-The Centre for the Promotion of Private Enterprise has warned against a World Bank proposal to increase the importation of petroleum products and food, saying it could undermine Nigeria’s recent economic progress.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, on Sunday criticised the recommendation contained in the World Bank’s Nigerian Development Update, describing it 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 noted that Nigeria is moving towards self-sufficiency in petroleum supply through private investments in local refining, warning that increased imports could derail this progress.
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 stressed that long-term economic growth must be driven by production and industrialisation rather than 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.”
Pointing to challenges faced by local producers, Yusuf highlighted high energy costs, inadequate infrastructure, and lending rates exceeding 25 per cent as key obstacles creating an uneven competitive environment.
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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, he warned that Nigeria’s historical dependence on imports had contributed to the collapse of refineries and significant foreign exchange strain.
He said, “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.”
Yusuf also cautioned against excessive food imports, noting their potential to harm local agriculture and rural livelihoods.
He said, “Import surges depress farmgate prices, discourage investment in agriculture, erode rural incomes, and undermine food system resilience.”
He further warned that heavy reliance on imports could put additional pressure on the naira, deplete foreign reserves, and expose the economy to global shocks.
The CPPE chief stated that, “Import liberalisation is not a sustainable solution to Nigeria’s supply-side challenges. It risks deepening structural vulnerabilities, accelerating de-industrialisation, and exposing the economy to greater external shocks.”
He urged the World Bank to focus on reforms that promote industrialisation, including support for domestic refining, reduction in production costs, and strengthening of manufacturing and agricultural value chains.
Yusuf added, “Nigeria’s development trajectory must be anchored on a production-driven growth model characterised by strong domestic refining capacity, a competitive manufacturing sector, robust agricultural systems, and energy and food security.”