The Centre for the Promotion of Private Enterprise (CPPE) has warned against the World Bank’s call for increased importation of petroleum products and food, describing it as misalignment with Nigeria’s current economic realities and reform direction.

In a statement issued yesterday, Chief Executive Officer of CPPE, Dr Muda Yusuf, said the proposal, contained in the World Bank’s recent Nigerian Development Update, was “deeply troubling” and risks undermining the country’s progress towards macroeconomic stability.

The bank, in its Nigeria Development Update (NDU), which has been taken down, urged Nigeria to issue more fuel import licences as part of measures to halt the price crisis and a possible spike in inflation. The recommendation had drawn criticisms.

Yusuf noted that Nigeria is already recording improvements in key indicators such as foreign reserves, inflation moderation and foreign exchange (FX) market stability, adding that policy focus should be on consolidating the gains rather than reversing them.

“At a time when the country is making measurable progress in restoring macroeconomic stability, the policy priority should be to consolidate these gains, not undermine them,” he said.

He argued that Nigeria is gradually moving towards self-sufficiency in petroleum products, driven by private investments in domestic refining capacity, and warned that encouraging imports at this stage could weaken these efforts.

“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,” Yusuf stated.

The CPPE boss stressed that sustainable economic transformation must be anchored on production and industrial capacity, not import dependence. According to him, addressing supply constraints through imports contradicts Nigeria’s long-term development goals.

Yusuf pointed to structural challenges facing domestic producers, including poor infrastructure, high energy costs, expensive financing and multiple taxation, noting that these conditions make competition with imports unfair.

“In this context, the notion of competition between imports and domestic production is both misleading and inequitable. What is being presented as market competition is, in reality, a structural asymmetry,” he said.

He added that many foreign producers benefit from subsidies, efficient infrastructure, and lower financing costs, while Nigerian firms operate in a high-cost environment.

On energy security, Yusuf warned that Nigeria’s past reliance on imported petroleum products led to the collapse of domestic refining, created a rent-seeking import regime and imposed an annual import burden estimated at between $10 billion and $15 billion at its peak.

He said recent progress in domestic refining, especially with the operationalisation of the Dangote Refinery, shows that the country can achieve self-sufficiency if supported by the right policies.

“The desired policy direction is unambiguous. Nigeria needs expansion of domestic refining capacity, not more import licences for petroleum products,” he said.

Yusuf also cautioned against excessive food imports, noting that such practices depress farmgate prices, discourage agricultural investment and weaken rural livelihoods.

He warned that heavy reliance on imports could worsen macroeconomic conditions by increasing demand for foreign exchange, putting pressure on the naira, depleting reserves and exposing the economy to global shocks.

The CPPE boss urged the World Bank to refocus its policy advice on industrialisation-driven reforms, including expanding refining capacity, reducing production costs, strengthening manufacturing ecosystems and enhancing agricultural value chains.

“Import liberalisation is not a sustainable solution to Nigeria’s supply-side challenges. On the contrary, it risks deepening structural vulnerabilities and accelerating de-industrialisation,” he said.

He called on policymakers to prioritise reforms that promote domestic production, strengthen industrial capacity and build a self-reliant economy.

“Nigeria’s development trajectory must be anchored on a production-driven growth model with strong domestic refining capacity, a competitive manufacturing sector, robust agricultural systems and energy and food security,” Yusuf mentioned.