The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the World Bank’s recommendation for Nigeria to increase imports of petroleum products and food to address supply challenges.
Eko Hot News reports that the Chief Executive Officer of CPPE, Muda Yusuf, in a statement, stressed that while addressing supply constraints is important, the country must prioritise strengthening domestic production rather than deepening import dependence.
Yusuf explained that Nigeria is already making notable progress towards self-sufficiency in petroleum products, largely due to growing private sector investments in local refining. He said this momentum should be sustained through supportive government policies.
He warned that increasing imports at this stage could reverse recent gains by putting pressure on foreign exchange, discouraging local investment, and exposing the economy to global uncertainties. According to him, external shocks in energy markets make import reliance a risky strategy.
The CPPE boss advocated for a stronger focus on expanding local refining capacity and ensuring consistent crude oil supply to domestic refineries under competitive conditions. He added that creating an enabling environment for downstream investments is key to long-term growth.
Yusuf also highlighted structural challenges facing Nigerian refiners, including high energy costs, infrastructure gaps, and policy inconsistencies. He noted that foreign competitors often operate under more favourable conditions, making it harder for local players to compete.
He commended recent progress in the sector, particularly the operations of the Dangote Refinery, describing it as evidence that Nigeria can achieve self-sufficiency in refined petroleum products with the right support.
On food security, Yusuf emphasised the need to boost local agricultural productivity, strengthen value chains, and improve access to markets. He cautioned that increased dependence on food imports could weaken these efforts and slow long-term development.
He further urged the World Bank to align its policy recommendations with global trends, noting that many advanced economies are now focusing on strengthening domestic industries and reducing external vulnerabilities.
According to Yusuf, Nigeria should adopt an industrialisation-driven strategy that promotes local production, enhances value addition, and builds economic resilience. He warned that relying heavily on imports is not a sustainable solution to supply-side challenges.
The CPPE concluded by calling on policymakers to prioritise reforms that support a self-reliant and industrialised economy, rather than embracing policies that could deepen dependence on foreign supply chains.
