CPPE Warns Against World Bank Food, Fuel Imports Advise

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned against policy recommendations attributed to the World Bank advocating increased importation of petroleum products and food, describing the stance as inconsistent with Nigeria’s current economic reform trajectory.

The World Bank had released its April Nigeria Development Update early last week but had removed the report from its website following reactions to its recommendations encouraging the country to import more.

In a statement issued by its Chief Executive, Dr Muda Yusuf, CPPE expressed “strong reservations” over the proposal, noting that such a strategy could undermine recent gains in macroeconomic stability and derail efforts at achieving self-sufficiency.

Yusuf noted that Nigeria is beginning to witness improvements across key macroeconomic indicators, including foreign reserves, exchange rate stability and moderating inflation, stressing that policy priorities should be geared towards consolidating these gains rather than reversing them through import dependence.

According to him, the country’s transition towards domestic sufficiency in petroleum supply, driven largely by private sector investments in refining, should be strengthened through supportive policies that enhance local production and deepen industrial linkages.

CPPE warned that encouraging fuel imports at this stage could heighten foreign exchange pressures, weaken ongoing investments in domestic refining and expose the economy to external shocks amid prevailing geopolitical tensions and volatility in global energy markets.

“The emphasis should be on expanding domestic production capacity, ensuring reliable crude supply to local refineries and fostering an enabling environment for downstream investments,” the statement noted.

The CPPE also raised concerns over what it described as a misplaced reliance on import-driven solutions to address supply-side constraints, arguing that sustainable economic transformation must be anchored on industrialisation, value addition and a competitive manufacturing base.

It pointed out that Nigerian producers operate under severe structural constraints, including poor infrastructure, high energy costs, elevated lending rates and multiple taxation, making the notion of fair competition with imported goods unrealistic.

“What is being presented as competition is, in reality, a structural imbalance that disadvantages local investors,” the group stated, adding that such conditions could discourage investment and perpetuate import dependence.

On energy security, the CPPE recalled that Nigeria’s historical reliance on imported petroleum products contributed to the collapse of domestic refining capacity, created a rent-seeking regime and imposed a heavy import burden estimated at between $10 billion and $15 billion annually at its peak.

It noted that recent progress in domestic refining, particularly with the emergence of large-scale private refineries, demonstrates the country’s potential to achieve self-sufficiency if supported by the right policy framework.

Similarly, it warned against increased food imports, stating that such a move could depress farmgate prices, discourage agricultural investment and weaken rural livelihoods, ultimately undermining food security.

CPPE chief, Yusuf, further highlighted the broader macroeconomic risks associated with heavy import dependence, including pressure on the naira, depletion of external reserves and heightened vulnerability to global commodity shocks.

He pointed to a growing global shift towards strategic protectionism, where advanced economies are prioritising domestic production, supply chain resilience and economic security, describing it as “paradoxical” for developing countries like Nigeria to be advised otherwise.

He further urged the World Bank to recalibrate its policy advisory towards supporting industrialisation-driven reforms, including expanding domestic refining capacity, improving manufacturing competitiveness and boosting agricultural productivity.