Economist Rejects World Bank’s Push For Increased Fuel, Food Imports

The Centre for the Promotion of Private Enterprise (CPPE) has expressed strong reservations about the World Bank’s recommendation in its latest Nigerian Development Update to increase the importation of petroleum products and food to address supply-side constraints.

The CEO of CPPE, Dr Muda Yusuf in a statement released to the media, emphasised that while addressing supply constraints is essential, the focus should be on nurturing Nigeria’s progress towards self-sufficiency in refined products rather than increasing import reliance.

He encouraged a robust approach to enhancing domestic production capabilities to ensure sustainable growth.

Yusuf noted that Nigeria has been making significant strides toward greater self-sufficiency in petroleum supplies, driven by impactful private investments in local refining operations.

He advocated for policies that not only bolster domestic production but also enhance value addition and foster industrial synergies within the economy.

He explained, “At this stage, amplifying imports could jeopardise the achievements we’ve made, as it may increase foreign exchange pressures, diminish local investment in refining, and leave our economy more vulnerable to external fluctuations, especially amid rising global geopolitical tensions and energy market instabilities.”

The focus, he argued, should be on expanding and stabilising local production capacities, ensuring a dependable crude supply to refineries under competitive conditions, and creating a supportive environment for investments in the downstream sector, saying this strategy is crucial for advancing energy security, economic resilience, and long-term industrial development.

Yusuf also noted the need for a realistic appraisal of the competitive landscape, highlighting that Nigerian refiners operate under challenging conditions, such as high energy costs, infrastructure deficits, and policy uncertainties, while foreign competitors often benefit from more favorable operating environments.

He commended recent advancements in domestic refining, particularly the successful operationalisation of Dangote Refinery, as a testament to Nigeria’s ability to attain self-sufficiency in petroleum products, given appropriate policy support.

Addressing food security, Yusuf underscored the importance of enhancing domestic agricultural productivity, fortifying value chains, and improving market access.

He pointed out that reliance on foreign supply channels could hinder progress in these areas.

Yusuf expressed a desire for the World Bank to align its policy recommendations with the experiences of advanced economies, which are increasingly emphasising domestic production, safeguarding key industries, and adopting protective measures in light of recent global disruptions.

He urged the World Bank to reconsider its approach, advocating for a shift towards industrialisation-driven reforms as a means to support Nigeria’s growth rather than focusing on import liberalisation.

“Promoting imports as a solution to our supply-side issues is not sustainable and could exacerbate existing vulnerabilities,” he cautioned.

He urged policymakers to reject import-dependent strategies and prioritise reforms that build a resilient, self-reliant, and industrialised Nigerian economy.