The Centre for the Promotion of Private Enterprise has criticised a recommendation by the World Bank suggesting increased importation of petroleum products and food into Nigeria.
In a statement issued on Sunday, Dr Muda Yusuf described the advice as inconsistent with Nigeria’s current reform direction and warned that it could harm the country’s long term economic progress.
He emphasised that industrialisation remains the most reliable route to achieving meaningful economic transformation. While the World Bank projected that Nigeria’s economy could grow by about 4.2 per cent in 2026, it also advised policymakers to save oil windfalls, tighten monetary policy and avoid broad subsidies as part of efforts to control inflation.
However, Yusuf argued that as macroeconomic conditions begin to stabilise, the country should focus on strengthening local production and increasing value addition instead of relying heavily on imports. According to him, sustainable development depends largely on building strong domestic industrial capacity.
He warned that increasing imports to address supply shortages could weaken local industries and reduce productivity within the real sector. “What the Nigerian economy urgently requires is a coherent industrial strategy that expands domestic production capacity and strengthens manufacturing competitiveness,” he said.
Yusuf further cautioned that an import driven approach could lead to de industrialisation, reduce job opportunities and make the economy more vulnerable to global disruptions. He pointed out that local manufacturers already struggle with several challenges, including poor infrastructure, high energy costs, expensive loans and multiple taxation.
He noted that promoting import liberalisation as a way to encourage competition overlooks the harsh realities faced by businesses in Nigeria and puts local investors at a disadvantage. To achieve industrial growth, he said the government must implement targeted policies that reduce production costs, improve logistics and strengthen industrial ecosystems.
On the petroleum sector, Yusuf stressed the need to protect Nigeria’s progress toward local refining. He warned that increasing fuel imports could discourage investment in refining, put pressure on foreign exchange and reverse recent gains.
Similarly, he expressed concern over rising food imports, noting that it could weaken local agriculture, reduce farmers’ incomes and threaten food security. He advised that Nigeria should instead improve agricultural productivity, develop value chains and enhance access to markets.
Yusuf also highlighted broader risks associated with import dependence, such as pressure on foreign reserves, exchange rate instability and weakened industrial connections. He observed that many developed countries now focus on strengthening domestic production and supply chains.
He urged the World Bank to align its recommendations with policies that support local refining, manufacturing and agriculture. “Import liberalisation is not a sustainable solution. The focus should be on building a resilient, self reliant and industrialised economy,” he said.
