The Centre for the Promotion of Private Enterprise (CPPE) has criticised a recommendation by the World Bank suggesting that Nigeria increase imports of petroleum products and food to address supply shortages. According to the organisation, such a policy could undermine the country’s efforts to achieve energy self-sufficiency and strengthen its domestic refining capacity.
The position was outlined in a statement released by the Chief Executive Officer of CPPE, Muda Yusuf, who argued that the recommendation does not align with Nigeria’s current economic direction or recent progress in stabilising its macroeconomic environment.
The response followed the World Bank’s Nigeria Development Update, which initially advised the Nigerian government to sustain the importation of Premium Motor Spirit (PMS) in order to stabilise fuel supply. However, the report was later removed from the World Bank’s website and replaced with a clarification that called for reassessment of the recommendation in light of evolving global energy dynamics.
CPPE argued that encouraging greater importation of petroleum products contradicts Nigeria’s current reform trajectory, especially at a time when the country is gradually rebuilding macroeconomic stability. The organisation pointed to signs of improvement such as stronger foreign reserves, moderating inflation, a more stable exchange rate regime, and the growing potential for Nigeria to export refined petroleum products as domestic refining capacity expands.
According to the think tank, policy priorities should focus on consolidating these gains rather than increasing dependence on imports. It warned that continued reliance on imported fuel could weaken investor confidence in local refining projects and place additional pressure on Nigeria’s foreign exchange reserves.
The organisation also cautioned that import-dependent strategies expose Nigeria to external shocks arising from global oil price volatility and supply disruptions. Such vulnerabilities, it said, could worsen domestic inflation and create instability in fuel pricing. CPPE emphasised that structural challenges affecting local production—including high financing costs, inadequate infrastructure, logistics bottlenecks, and regulatory constraints—should instead be addressed to unlock the full potential of Nigeria’s refining sector.
The group further noted that recent private sector investments in refining demonstrate growing prospects for domestic energy security, provided that government policies remain consistent and supportive. Global energy trends, it added, are increasingly shifting toward self-reliance and supply security, making domestic production strategies more relevant for long-term economic stability.
To strengthen the downstream petroleum sector, CPPE urged policymakers to prioritise expanding refining capacity, ensure reliable crude supply to local refineries, improve infrastructure, and reduce production costs for domestic operators.
The debate emerged after the World Bank’s Nigeria Development Update initially recommended sustained fuel imports to stabilise supply while Nigeria gradually transitions to a more competitive downstream petroleum market. The report later drew attention when it was removed from the organisation’s website, prompting speculation about a possible revision of its policy stance.
In its subsequent clarification, the World Bank acknowledged that volatility in global energy markets makes import-dependent policy prescriptions less suitable for countries seeking stronger energy security and resilience. The institution reiterated the importance of carefully sequenced reforms that protect consumers while promoting market efficiency.
Nigeria’s downstream petroleum sector has undergone significant changes in recent years, particularly following the removal of fuel subsidies which exposed domestic fuel prices to international market forces. Although domestic refining capacity is expanding gradually, imported petroleum products still account for a significant portion of the country’s fuel supply.
Ongoing geopolitical tensions and disruptions in global energy markets continue to affect supply stability and pricing for oil-importing nations, including Nigeria. As a result, energy security, affordability, and supply stability remain central issues in Nigeria’s economic policy discussions, even as the World Bank continues to advocate for a competitive downstream market supported by regulation and targeted social protection measures.
