The Centre for the Promotion of Private Enterprise (CPPE), led by Dr Muda Yusuf, has raised concerns over a recommendation by the World Bank in its Nigeria Development Update, which advised increased imports of petroleum products and food to ease supply constraints in Nigeria.
The recommendation, which has since been removed from the World Bank’s website and replaced with a clarification, suggested that Nigeria should continue importing Premium Motor Spirit (PMS) to stabilise fuel supply while gradually moving toward a more competitive downstream market.
The CPPE, however, says the position runs against Nigeria’s current economic direction, especially at a time when the country is trying to strengthen local refining capacity and reduce dependence on imports.
In its reaction, the organisation argued that encouraging more imports at this stage risks weakening investor confidence in domestic refineries and increasing pressure on foreign exchange demand, at a time when Nigeria is still trying to stabilise key macroeconomic indicators.
What stands out in this exchange is the timing. Nigeria is only beginning to see early signals of improved refining capacity and a more stable exchange rate environment, even though supply challenges persist. A policy tilt back toward imports, in that context, raises questions about whether short-term supply fixes could undermine longer-term industrial goals.
The CPPE also pointed to structural issues such as high production costs, infrastructure gaps, and regulatory bottlenecks, arguing that these are the real constraints that need fixing if local refining is to become sustainable.
At the centre of the debate is a familiar tension in Nigeria’s economic policy, whether to prioritise immediate market stability through imports, or to endure short-term pressure in order to build domestic capacity. The outcome of that balance will continue to shape both fuel pricing and investor confidence in the downstream sector.
