Reject Import-dependent Policies, Economist Warns Federal Govt

The Centre for the Promotion of Private Enterprise (CPPE) has emphasised the need for Nigerian policymakers to focus on enhancing domestic production capabilities rather than adopting import-dependent strategies.

In a statement, the Centre expressed concern regarding a recent policy suggestion by the World Bank outlined in its Nigerian Development Update, which recommended increasing imports of petroleum products and food.

He believes such an approach may not align well with Nigeria’s current economic landscape, which shows signs of recovery and potential.

The director/CEO of CPPE, Dr Muda Yusuf, stated that, with ongoing improvements in foreign reserves, moderated inflation, and a more stable exchange rate, this is a pivotal moment for Nigeria, and that the government’s focus should be on consolidating these gains rather than moving backwards.

He noted that the country is making strides towards greater self-sufficiency in petroleum supply, driven by increasing private investments in domestic refining.

Yusuf advocated policies to strengthen this momentum by supporting local production, enhancing value addition, and fostering industrial linkages within the economy.

He cautioned that increased imports at this juncture could jeopardise recent achievements, heighten foreign exchange pressures, and undermine domestic investments in refining.

He said that prioritising the expansion and stabilisation of domestic production capacity, ensuring a reliable crude oil supply to local refineries, and creating a conducive environment for downstream sector investments are vital steps toward achieving sustainable energy security and economic resilience.

“This direction leads to long-term industrial development and should replace the outdated model of import dependence,” he said.

Yusuf also highlighted the importance of sustainable economic transformation, rooted in local production and value addition rather than reliance on imports.

He stressed that Nigeria’s urgent need is for a coherent industrial strategy that enhances domestic production capacity, strengthens competitiveness in manufacturing, and deepens value chains across critical sectors, saying that an over-reliance on imports could accelerate de-industrialisation, undermining job creation in an economy with a rapidly growing labour force.

He pointed out that “while trade liberalisation can enhance competition, it must consider the structural challenges facing Nigerian producers, including poor logistics, high energy costs, and elevated financing rates. A strong domestic industrial ecosystem needs to be cultivated, ensuring that competition arises from within rather than through overwhelming import pressures.”

Yusuf underscored the risks linked to import dependence, especially in the energy sector, citing Nigeria’s historical reliance on imports, which has hindered domestic refining capacity and created significant economic strains.

He mentioned that many major economies today are prioritising domestic production and implementing policies to safeguard critical industries, in contrast with the standard recommendation for liberalised trade in countries still overcoming structural challenges.

Yusuf called on policymakers to take decisive actions to build a resilient, self-reliant, and industrialised Nigerian economy for the benefit of its citizens.