Lagos: The Centre for the Promotion of Private Enterprise (CPPE) has rejected the World Bank’s call for increased imports of petroleum products and food, warning it undermines Nigeria’s industrialisation goals.
Dr Muda Yusuf, CPPE founder, stated in a Sunday statement that the World Bank’s advice was misaligned with Nigeria’s reform path and threatened long-term development goals.
He argued that boosting local industry is the clearest route to transforming Nigeria’s economy.
The World Bank projected about 4.2 per cent economic growth for Nigeria in 2026.
It also urged authorities to save oil windfalls, tighten monetary policy and avoid blanket subsidies to curb inflation.
But Yusuf argued that, as macroeconomic stability improves, Nigeria should prioritise domestic production and value addition over increased imports.
He further stressed that sustainable transformation was anchored on strong industrial capability.
According to him, shifting to increased importation to address supply constraints would undermine local production and weaken the real sector.
He summarised, ‘What the Nigerian economy urgently requires is a coherent industrial strategy that expands domestic production capacity and strengthens manufacturing competitiveness.’
He cautioned that an import-heavy approach risks accelerating de-industrialisation, limiting new job opportunities, and making the economy more vulnerable to global disruptions.
He also noted that domestic producers faced constraints, including poor infrastructure, high energy costs, elevated lending rates, and multiple taxation.
He said presenting import liberalisation as a competition tool ignored business realities and disadvantaged local investors.
Yusuf added that industrialisation required deliberate policies to reduce costs, improve logistics and strengthen industrial ecosystems.
He emphasised that Nigeria’s transition toward self-sufficiency in petroleum refining should be protected through supportive policies.
He warned that increased petroleum imports could weaken refining investments, heighten foreign-exchange pressures, and reverse sectoral gains.
On agriculture, Yusuf cautioned that excessive food imports could discourage local production, depress rural incomes and undermine food security.
He said Nigeria’s food system must be strengthened through improved productivity, value chain development and better market access.
Yusuf highlighted risks of import dependence, including pressure on reserves, exchange rate volatility and weakened industrial linkages.
He noted that many advanced economies now prioritise domestic production and supply chain resilience through strategic protectionism.
Yusuf called on the World Bank to focus its recommendations on reforms that directly drive industrialisation in refining, manufacturing, and agriculture.
Key priorities include lowering production costs, strengthening industrial clusters, promoting backward integration, and removing structural barriers. Specifically, policy actions should target cost reductions, cluster development, deeper local value chains, and the elimination of obstacles to manufacturing growth.
He concluded that import liberalisation is not a sustainable solution, restating that Nigeria’s future depends on building a robust, self-reliant industrial base.