CPPE at odds with World Bank on imports of fuel and food supplies

The Centre for the Promotion of Private Enterprise, CPPE, has expressed disagreement with the World Bank's proposed policy, which advocates for increased importation of petroleum products and food into the country, as stated in its 2026 report in response to supply-side constraints.

n

Dr. Muda Yusuf, the Chief Executive Officer of CPPE, stated that the CPPE has strong reservations about the World Bank's policy proposition, which he believes is deeply troubling and fundamentally misaligned with Nigeria's current economic realities and reform trajectory.

n

According to Dr. Yusuf, Nigeria is making progress in restoring macroeconomic stability, with improving foreign reserves, moderating inflation, a more stable exchange rate regime, and growing capacity for the export of refined petroleum products, and therefore the policy priority should be to consolidate these gains, not undermine them.

n

Nigeria is transitioning towards greater self-sufficiency in petroleum product supply, driven by significant private investments in domestic refining capacity, and this momentum should be strengthened through deliberate policies that support local production, enhance value addition, and deepen industrial linkages within the economy.

n

Dr. Yusuf warned that encouraging increased importation of petroleum products at this stage risks reversing hard-won gains, exacerbating foreign exchange pressures, weakening domestic refining investments, and heightening the economy's vulnerability to external shocks.

n

The emphasis, according to Dr. Yusuf, should be on expanding and stabilising domestic production capacity, ensuring reliable crude supply to local refineries on competitive terms, and fostering an enabling environment for downstream sector investments, which is the pathway to sustainable energy security, economic resilience, and long-term industrial development.

n

Dr. Yusuf made a case for industrialisation and energy security, calling for strategic protection of the nation's economy, and stated that it is paradoxical that the World Bank is urging developing economies such as Nigeria to embrace policy prescriptions that many advanced economies are increasingly retreating from.

n

Across the developed world, there is a clear resurgence of strategic protectionism and supply chain reconfiguration, driven by lessons from recent global disruptions, including the pandemic and ongoing geopolitical tensions, with major economies prioritising domestic production, safeguarding critical industries, and deploying subsidies, tariffs, and localisation policies to strengthen economic resilience and national security.

n

In contrast, recommending import liberalisation for countries still grappling with structural deficits and industrial fragility risks entrenching dependence, undermining local capacity, and stalling the industrialisation process, according to Dr. Yusuf.

n

Dr. Yusuf added that import liberalisation is not a sustainable solution to Nigeria's supply-side challenges, and instead risks deepening structural vulnerabilities, accelerating de-industrialisation, and exposing the economy to greater external shocks.