CPPE faults World Bank advice on fuel, food imports

By Abubakar Yunusa

The Centre for the Promotion of Private Enterprise has raised concerns over a World Bank recommendation urging increased imports of petroleum products and food, warning that the move could derail Nigeria’s push for energy self-sufficiency.
The position was contained in a statement issued on Sunday by the Chief Executive Officer of the CPPE, Dr Muda Yusuf.
The reaction followed an earlier recommendation by the World Bank that Nigeria should sustain the importation of Premium Motor Spirit to stabilise fuel supply.
However, the report was subsequently removed from the Bank’s website and replaced with a clarification advising a reassessment in line with evolving global energy dynamics.
The CPPE said the recommendation to ramp up imports was inconsistent with Nigeria’s current economic direction and reform agenda.
It argued that recent macroeconomic gains and emerging domestic refining capacity should be strengthened, rather than weakened by a return to import dependence.
The organisation noted that Nigeria had recorded measurable progress in macroeconomic stability, citing improvements in foreign reserves, easing inflationary pressures, a more stable exchange rate, and increasing capacity for refined petroleum exports.
It warned that continued reliance on imported fuel could erode investor confidence in local refineries and heighten pressure on foreign exchange demand.
The CPPE also pointed to growing private sector investments in refining, describing them as a signal of Nigeria’s potential to achieve energy self-sufficiency if policy consistency is sustained.
It added that global trends were shifting towards energy security and reduced reliance on imports, making domestic production strategies more viable in the long term.
The group urged policymakers to focus on expanding refining capacity, ensuring consistent crude supply to local refineries, improving infrastructure, and lowering production costs in the downstream sector.
It cautioned that import-driven strategies could expose Nigeria to external shocks arising from global oil price volatility and supply disruptions.
According to the CPPE, such vulnerabilities could fuel domestic inflation and destabilise fuel pricing.
The organisation further identified structural bottlenecks hindering local production, including high financing costs, infrastructure deficits, logistics challenges, and regulatory constraints, which it said must be urgently addressed to unlock domestic capacity.