{"id":21376,"date":"2026-04-12T11:17:19","date_gmt":"2026-04-12T11:17:19","guid":{"rendered":"https:\/\/thenewsnow.org\/?p=21376"},"modified":"2026-04-12T11:17:19","modified_gmt":"2026-04-12T11:17:19","slug":"cppe-warns-against-world-bank-advocacy-for-increased-fuel-and-food-imports","status":"publish","type":"post","link":"https:\/\/thenewsnow.org\/index.php\/2026\/04\/12\/cppe-warns-against-world-bank-advocacy-for-increased-fuel-and-food-imports\/","title":{"rendered":"CPPE WARNS AGAINST WORLD BANK ADVOCACY FOR INCREASED FUEL AND FOOD IMPORTS"},"content":{"rendered":"

Introduction<\/span><\/span><\/p>\n

The Centre for the Promotion of Private Enterprise (CPPE) expresses strong reservations about the policy proposition by the World Bank in its recent Nigerian Development Update<\/span><\/span>,<\/span><\/span> advocating increased importation of petroleum products and food as a solution to Nigeria\u2019s supply-side constraints.<\/span><\/span><\/p>\n

This recommendation is deeply troubling and fundamentally misaligned with Nigeria\u2019s current economic realities and reform trajectory. At a time when the country is making measurable progress in restoring macroeconomic stability\u2014evidenced by improving foreign reserves, moderating inflation, a more stable exchange rate regime, and growing capacity for the export of refined petroleum products\u2014the policy priority should be to consolidate these gains, not undermine them.<\/span><\/span><\/p>\n

Nigeria is gradually transitioning towards greater self-sufficiency in petroleum products supply, driven by significant <\/span><\/span>private <\/span><\/span>investments in domestic refining capacity. This momentum should be strengthened through deliberate policies that support local production, enhance value addition, and deepen industrial linkages within the economy.<\/span><\/span><\/p>\n

Encouraging increased importation of petroleum products at this stage risks reversing hard-won gains. It would exacerbate foreign exchange pressures, weaken domestic refining investments, and heighten the economy\u2019s vulnerability to external shocks\u2014particularly in a global environment characterized by geopolitical tensions and energy market volatility.<\/span><\/span><\/p>\n

The emphasis, therefore, should be on expanding and stabilizing domestic production capacity, ensuring reliable crude supply to local refineries on competitive terms, and fostering an enabling environment for downstream sector investments. This is the pathway to sustainable energy security, economic resilience, and long-term industrial development\u2014not a return to import dependence.<\/span><\/span><\/p>\n

\n

\n

Industrialisation Must Be the Priority<\/span><\/span><\/p>\n

Sustainable economic transformation is anchored on <\/span><\/span>production, value addition, and industrial capability<\/span><\/span>\u2014not import dependence. The suggestion that supply-side constraints can be addressed through increased imports runs counter to Nigeria\u2019s long-term development aspirations.<\/span><\/span><\/p>\n

What the Nigerian economy urgently requires is a coherent industrial strategy that:<\/span><\/span><\/p>\n

\u2022 <\/span>Expands domestic production capacity<\/span><\/span><\/div>\n
\u2022 <\/span>Strengthens manufacturing competitiveness<\/span><\/span><\/div>\n
\u2022 <\/span>Deepens value chains across critical sectors<\/span><\/span><\/div>\n

Import-driven solutions risk accelerating <\/span><\/span>de-industrialisation<\/span><\/span>, weakening the real sector, and undermining job creation prospects in an economy with a rapidly growing labour force.<\/span><\/span><\/p>\n

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<\/div>\n<\/div>\n

Structural Constraints and the Illusion of Competition<\/span><\/span><\/p>\n

The assumption that trade liberalisation enhances competition fails to reflect the structural realities facing Nigerian producers.<\/span><\/span><\/p>\n

Domestic firms contend with:<\/span><\/span><\/p>\n

\u2022 <\/span>Poor logistics and transport infrastructure<\/span><\/span><\/div>\n
\u2022 <\/span>High energy costs<\/span><\/span><\/div>\n
\u2022 <\/span>Elevated financing costs, with lending rates often exceeding 25\u201330%<\/span><\/span><\/div>\n
\u2022 <\/span>Multiple taxation, fees, and regulatory burdens<\/span><\/span><\/div>\n

In this context, the notion of \u201ccompetition\u201d between imports and domestic production is both misleading and inequitable. What is being presented as market competition is, in reality, a structural asymmetry that places domestic producers at a significant disadvantage. Nigerian refiners<\/span><\/span> and other <\/span><\/span>manufacturers<\/span><\/span> operate in a high-cost environment\u2014characterised by elevated energy costs, logistics bottlenecks, infrastructure deficits, high interest rates, and policy uncertainties\u2014while many <\/span><\/span>foreign competitors benefit from far more enabling ecosystems, including state-backed subsidies, efficient infrastructure, and lower financing costs.<\/span><\/span><\/p>\n

This is not a level playing field. It is effectively a contest between structurally constrained local investors and globally competitive firms with systemic advantages. Such a framework cannot deliver efficient market outcomes; rather, it undermines domestic capacity, discourages investment, and perpetuates import dependence.<\/span><\/span><\/p>\n

Beyond the issue of structural imbalance, there are also legitimate concerns around the quality of imported petroleum products and the risk of dumping. In the absence of robust quality assurance and trade safeguards, the domestic market could be exposed to substandard products, with implications for consumer protection, environmental standards, and the <\/span><\/span>sustainability<\/span><\/span> of local refining investments.<\/span><\/span><\/p>\n

A policy stance that tolerates such distortions not only weakens domestic industry but also compromises Nigeria\u2019s long-term objective of achieving energy security, industrial self-reliance, and sustainable economic growth.<\/span><\/span><\/p>\n

Sustainable competition should be fostered <\/span><\/span>within a strengthened domestic industrial ecosystem<\/span><\/span>, not through exposure to import pressures.<\/span><\/span><\/p>\n

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<\/div>\n<\/div>\n

Energy Security: A Strategic Imperative<\/span><\/span><\/p>\n

The risks of import dependence are most evident in the energy sector. Nigeria\u2019s historical reliance on imported petroleum products:<\/span><\/span><\/p>\n

\u2022 <\/span>Led to the collapse of domestic refining capacity<\/span><\/span><\/div>\n
\u2022 <\/span>Created a rent-seeking import regime with significant leakages<\/span><\/span><\/div>\n
\u2022 <\/span>Imposed an annual import burden estimated at <\/span><\/span>$10\u201315 billion<\/span><\/span> at its peak<\/span><\/span><\/div>\n
\u2022 <\/span>Exposed the economy to severe foreign exchange and fiscal pressures<\/span><\/span><\/div>\n

Recent developments in domestic refining\u2014particularly the operationalisation of <\/span><\/span>Dangote Refinery<\/span><\/span>\u2014have demonstrated Nigeria\u2019s capacity to achieve <\/span><\/span>self-sufficiency in petroleum products<\/span><\/span>, subject to supportive policy frameworks.<\/span><\/span><\/p>\n

The ongoing geopolitical tensions in the Middle East have further underscored the dangers of energy dependence. Global supply disruptions <\/span><\/span>are <\/span><\/span>quickly transmit<\/span><\/span>ted<\/span><\/span> into domestic price shocks, amplifying inflationary pressures and eroding business margins.<\/span><\/span><\/p>\n

The <\/span><\/span>desired <\/span><\/span>policy direction is therefore unambiguous:<\/span><\/span>\u00a0<\/span><\/span>Nigeria needs expansion of domestic refining capacity\u2014not more import licences for petroleum products.<\/span><\/span><\/p>\n

Encouraging importation at this stage would undermine investor confidence in local refining, weaken backward integration, and reverse progress towards energy security.<\/span><\/span><\/p>\n

\n
<\/div>\n<\/div>\n

Food Imports and Agricultural Disincentives<\/span><\/span><\/p>\n

The case against excessive food importation is equally compelling. Import surges:<\/span><\/span><\/p>\n

\u2022 <\/span>Depress farmgate prices<\/span><\/span><\/div>\n
\u2022 <\/span>Discourage investment in agriculture<\/span><\/span><\/div>\n
\u2022 <\/span>Erode rural incomes and livelihoods<\/span><\/span><\/div>\n
\u2022 <\/span>Undermine food system resilience<\/span><\/span><\/div>\n

Nigeria\u2019s food security strategy must be anchored on <\/span><\/span>boosting domestic agricultural productivity, strengthening value chains, and improving market access<\/span><\/span>, not on reliance on external supply channels.<\/span><\/span><\/p>\n

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<\/div>\n<\/div>\n

Macroeconomic and External Sector Risks<\/span><\/span><\/p>\n

Heavy import dependence carries significant macroeconomic consequences:<\/span><\/span><\/p>\n

\u2022 <\/span>Increased demand for foreign exchange and pressure on the naira<\/span><\/span><\/div>\n
\u2022 <\/span>Depletion of external reserves<\/span><\/span><\/div>\n
\u2022 <\/span>Heightened exposure to global commodity and supply shocks<\/span><\/span><\/div>\n
\u2022 <\/span>Weakening of domestic value addition and industrial linkages<\/span><\/span><\/div>\n

These risks are incompatible with the objectives of <\/span><\/span>macroeconomic stability, economic resilience, and national economic sovereignty<\/span><\/span>.<\/span><\/span><\/p>\n

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<\/div>\n<\/div>\n

Global Shift Towards Strategic Protection<\/span><\/span><\/p>\n

Across advanced economies, there is a clear shift away from unrestrained trade liberalisation towards <\/span><\/span>strategic protectionism<\/span><\/span>. Governments are increasingly prioritising:<\/span><\/span><\/p>\n

\u2022 <\/span>Domestic production capacity<\/span><\/span><\/div>\n
\u2022 <\/span>Supply chain resilience<\/span><\/span><\/div>\n
\u2022 <\/span>Local content development<\/span><\/span><\/div>\n
\u2022 <\/span>Economic security<\/span><\/span><\/div>\n

It is therefore paradoxical\u2014and indeed <\/span><\/span>worrying<\/span><\/span>\u2014that the World Bank is urging developing economies such as Nigeria to embrace policy prescriptions that many advanced economies are increasingly retreating from. Across the developed world, there is a clear resurgence of strategic protectionism and supply chain reconfiguration\u2014driven by lessons from recent global disruptions, including the pandemic and ongoing geopolitical tensions.<\/span><\/span><\/p>\n

Major economies are prioritising domestic production, safeguarding critical industries, and deploying subsidies, tariffs, and localisation policies to strengthen economic resilience and national security. 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.<\/span><\/span><\/p>\n

\n

What the World Bank Should Be Promoting<\/span><\/span><\/p>\n

The World Bank should recalibrate its policy advisory towards <\/span><\/span>industrialisation-driven reforms<\/span><\/span>, rather than import expansion.<\/span><\/span><\/p>\n

Priority policy recommendations should include:<\/span><\/span><\/p>\n

\u2022 <\/span>Expansion of domestic refining capacity and guaranteed crude supply to local refineries<\/span><\/span><\/div>\n
\u2022 <\/span>Targeted interventions to reduce production costs, especially energy and logistics<\/span><\/span><\/div>\n
\u2022 <\/span>Strengthening manufacturing ecosystems and industrial clusters<\/span><\/span><\/div>\n
\u2022 <\/span>Enhancing agricultural productivity and agro-processing value chains<\/span><\/span><\/div>\n
\u2022 <\/span>Addressing structural bottlenecks constraining private sector production<\/span><\/span><\/div>\n
\u2022 <\/span>Promoting backward integration and local content development<\/span><\/span><\/div>\n

These are the policy pathways that will deliver sustainable growth, job creation, and economic resilience.<\/span><\/span><\/p>\n

\n
<\/div>\n<\/div>\n

Conclusion<\/span><\/span><\/p>\n

Import liberalisation is not a sustainable solution to Nigeria\u2019s supply-side challenges. On the contrary, it risks deepening structural vulnerabilities, accelerating de-industrialisation, and exposing the economy to greater external shocks.<\/span><\/span><\/p>\n

Nigeria\u2019s development trajectory must be anchored on a <\/span><\/span>production-driven growth model<\/span><\/span>, characterised by:<\/span><\/span><\/p>\n

\u2022 <\/span>Strong domestic refining capacity<\/span><\/span><\/div>\n
\u2022 <\/span>Competitive manufacturing sector<\/span><\/span><\/div>\n
\u2022 <\/span>Robust agricultural systems<\/span><\/span><\/div>\n
\u2022 <\/span>Energy and food security<\/span><\/span><\/div>\n

The CPPE therefore urges policymakers to reject import-dependent strategies and prioritise reforms that <\/span><\/span>build a resilient, self-reliant, and industrialised Nigerian economy<\/span><\/span>.<\/span><\/span><\/p>\n

\n

DR MUDA YUSUF<\/span><\/span><\/p>\n

CHIEF EXECUTIVE OFFICER<\/span><\/span><\/p>\n

CENTRE FOR THE PROMOTION OF PRIVATE ENTERPRISE [CPPE]<\/span><\/span><\/p>\n

12<\/span><\/span>TH<\/span><\/span> APRIL 2026<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Introduction The Centre for the Promotion of Private Enterprise (CPPE) expresses strong reservations about the policy proposition by the World<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-21376","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/21376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/comments?post=21376"}],"version-history":[{"count":1,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/21376\/revisions"}],"predecessor-version":[{"id":21377,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/21376\/revisions\/21377"}],"wp:attachment":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media?parent=21376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/categories?post=21376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/tags?post=21376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}