By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has strongly criticised the World Bank over its recent recommendation that Nigeria should increase the importation of petroleum products and food to address supply-side constraints.
In a statement issued on Sunday by the Chief Executive Officer of CPPE, Dr. Muda Yusuf described the proposal as “deeply troubling” and inconsistent with Nigeria’s current economic reform trajectory, warning that such a policy could reverse gains made in macroeconomic stability and industrial development.
He noted that Nigeria is gradually making progress toward self-sufficiency in petroleum products, driven largely by private sector investments in domestic refining capacity, including the operations of the Dangote Refinery.
Dr. Yusuf argued that encouraging imports at this stage would undermine local investments, increase foreign exchange pressures, and expose the economy to external shocks.
According to him, Nigeria’s priority should be to strengthen domestic production across key sectors, rather than rely on imports that could weaken industrial growth and job creation.
“Sustainable economic transformation is anchored on production, value addition, and industrial capability—not import dependence,” the statement said, stressing that import-driven solutions risk accelerating de-industrialisation.
Dr Yusuf also highlighted structural challenges facing Nigerian manufacturers, including poor infrastructure, high energy costs, expensive financing, and multiple taxation.
He argued that these constraints create an uneven playing field, making it difficult for local producers to compete with imported goods.
On energy security, he warned that Nigeria’s historical dependence on imported petroleum products had previously led to the collapse of domestic refining capacity and imposed a heavy financial burden, estimated at between $10 billion and $15 billion annually at its peak.
He added that recent global geopolitical tensions, particularly in the Middle East, have underscored the risks of relying on imports, as supply disruptions can quickly translate into domestic price shocks.
Dr Yusuf also cautioned against increased food imports, noting that such a move could depress farmgate prices, discourage agricultural investment, and undermine rural livelihoods.
“Food security must be built on domestic agricultural productivity and resilient value chains, not external dependence,” it stated.
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Dr. Yusuf further warned that heavy import reliance could weaken Nigeria’s external sector by increasing demand for foreign exchange, depleting reserves, and putting pressure on the naira.
The think tank called on the World Bank to refocus its policy advice toward supporting industrialisation, local production, and economic resilience. It urged policymakers to prioritise reforms that reduce production costs, strengthen manufacturing ecosystems, and boost agricultural productivity.
“Import liberalisation is not a sustainable solution to Nigeria’s supply-side challenges,” CPPE said.
“The country’s development must be anchored on a production-driven growth model that promotes energy security, food sufficiency, and industrial competitiveness.”
