The Centre for the Promotion of Private Enterprise has criticised a recent policy recommendation by the World Bank urging Nigeria to expand imports of fuel and food, warning that such measures could undermine domestic production and reverse recent macroeconomic gains.
The World Bank, in its Nigeria Development Update released on April 7, 2026, advised Africa’s largest economy to allow greater imports of premium motor spirit, or petrol, as part of efforts to ease supply constraints. The institution subsequently clarified its position on April 10, stating that policy should prioritise fuel supply stability and targeted social interventions, while sequencing long-term reforms to avoid jeopardising energy security.
Responding in a statement issued on April 12, Muda Yusuf, chief executive officer of CPPE, said the recommendation was “deeply troubling” and out of step with Nigeria’s current economic trajectory. The statement was made in Lagos and reflects growing domestic pushback against external policy prescriptions.
Yusuf argued that Nigeria has begun to see measurable improvements in macroeconomic stability, citing firmer foreign exchange reserves, moderating inflationary pressures, and a more stable exchange rate regime. In his view, policy focus should be on consolidating these gains rather than introducing measures that could increase external vulnerabilities.
“At a time when the country is consolidating macroeconomic gains and expanding its domestic refining capacity, the policy priority should be to strengthen these gains, not undermine them,” he said.
The CPPE warned that increased reliance on imported petroleum products could heighten demand for foreign exchange, exert pressure on the naira, and weaken incentives for investment in local refining infrastructure. Nigeria has historically depended on imports to meet domestic fuel demand, a model that strained public finances and contributed to persistent supply disruptions.
Recent developments in the downstream sector, including the ramp-up of large-scale private refining capacity such as the Dangote Refinery, have raised expectations of a shift toward self-sufficiency. Yusuf said policy should reinforce this transition by supporting domestic producers and strengthening industrial linkages.
“Nigeria is gradually transitioning towards self-sufficiency in petroleum products supply, driven by significant private investments in domestic refining capacity. This momentum should be supported through policies that enhance local production,” he said.
He added that import-driven solutions expose the economy to external shocks, particularly in a global environment marked by geopolitical tensions and volatile energy prices. Strengthening local refining capacity and ensuring reliable crude supply to domestic processors would provide a more sustainable path to energy security, he said.
The CPPE also challenged the assumption that increased imports would improve market competition. Yusuf argued that domestic firms operate under structural constraints that limit their competitiveness, including high energy costs, inefficient logistics, elevated borrowing costs, and regulatory burdens.
“What is being presented as competition is, in reality, a structural imbalance,” he said, noting that foreign suppliers often benefit from more efficient infrastructure and, in some cases, state-backed support. Such disparities, he said, risk crowding out local investment and entrenching import dependence.
Nigeria’s previous reliance on fuel imports contributed to the deterioration of domestic refining capacity and imposed significant fiscal and foreign exchange costs, according to the CPPE. Reintroducing policies that favour imports at a time when local capacity is expanding could erode investor confidence and delay progress toward energy independence.
Beyond fuel, the think tank raised concerns about the World Bank’s support for increased food imports as a means of addressing supply shortages. Yusuf said such a strategy could depress farmgate prices, weaken incentives for local production, and undermine rural livelihoods.
“Import surges in food commodities erode the incentives for local production and undermine the resilience of the domestic food system,” he said.
The CPPE cautioned that a heavier import bill would intensify pressure on Nigeria’s external sector by increasing demand for foreign currency and potentially depleting reserves. This, in turn, could destabilise the exchange rate and complicate monetary policy management.
Yusuf also pointed to a broader shift in global economic policy, noting that many advanced economies are increasingly prioritising domestic production, supply chain resilience, and local content development. Against this backdrop, he described the World Bank’s recommendation for import liberalisation in developing economies as inconsistent.
“It is paradoxical that developing economies are being advised to adopt policies that could entrench dependence and weaken industrial capacity,” he said.
The CPPE urged the World Bank to recalibrate its advisory framework toward policies that support industrialisation, expand domestic production, and strengthen Nigeria’s manufacturing and agricultural base. According to Yusuf, a production-led growth model anchored on energy security and local capacity development offers a more durable solution to the country’s supply-side constraints.
“Import liberalisation is not a sustainable solution to Nigeria’s supply-side challenges,” he said.