File Photo: Chief Executive Officer, CPPE, Dr. Muda Yusuf The Centre for the Promotion of Private Enterprise has cautioned against a policy proposed by the World Bank to increase the importation of petroleum products and food, warning that it could reverse Nigeria’s recent economic gains.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, on Sunday said the recommendation, contained in the World Bank’s Nigerian Development Update, was “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 stressed that Nigeria was transitioning towards self-sufficiency in petroleum supply through private investments in domestic refining, warning that increased imports would weaken this momentum.
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 added that sustainable growth must be anchored on production and industrialisation, not import dependence.
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.” Highlighting structural challenges facing local producers, Yusuf noted that high energy costs, poor infrastructure, and lending rates above 25 per cent have created an uneven playing field.
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This is not a level playing field.” On energy security, Yusuf warned that Nigeria’s past reliance on imports had led to refinery collapse and huge foreign exchange burdens. 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.” He also cautioned against excessive food imports, noting that they could hurt local farmers and weaken rural livelihoods. Yusuf said, “Import surges depress farmgate prices, discourage investment in agriculture, erode rural incomes, and undermine food system resilience.” He further warned that heavy import dependence could increase pressure on the naira, deplete reserves, and expose the economy to global shocks.
The CPPE chief explained 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 promote industrialisation-focused reforms, 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.” The Chief Executive Officer of CPPE, Dr Muda Yusuf, on Sunday said the recommendation, contained in the World Bank’s Nigerian Development Update, was “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 stressed that Nigeria was transitioning towards self-sufficiency in petroleum supply through private investments in domestic refining, warning that increased imports would weaken this momentum.
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.” 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 stressed that Nigeria was transitioning towards self-sufficiency in petroleum supply through private investments in domestic refining, warning that increased imports would weaken this momentum.