The Centre for the Promotion of Private Enterprise (CPPE) has expressed concern over a World Bank recommendation in its Nigeria Development Update advocating increased imports of petroleum products and food to address supply constraints, warning it could undermine Nigeria’s push for energy self-sufficiency.
The position was contained in a statement released on Sunday by Dr Muda Yusuf, Chief Executive Officer of the CPPE.
The reaction follows the World Bank’s earlier recommendation that Nigeria sustain the importation of Premium Motor Spirit (PMS) to stabilise fuel supply, before the report was later removed from its website and replaced with a clarification urging a reassessment in light of evolving global energy dynamics.
What they are saying
The CPPE says the World Bank’s recommendation to increase the importation of petroleum products is misaligned with Nigeria’s current economic trajectory and reform direction.
It argued that recent macroeconomic improvements and emerging domestic refining capacity should be consolidated rather than weakened by greater import dependence.
- “The Centre for the Promotion of Private Enterprise (CPPE) expresses strong reservations about the policy proposition by the World Bank in its recent Nigeria Development Update, advocating increased importation of petroleum products and food as a solution to Nigeria’s supply-side constraints.
- “This recommendation is deeply troubling and fundamentally misaligned with Nigeria’s current economic realities and reform trajectory.
- “At a time when the country is making measurable progress in restoring macroeconomic stability—evidenced by improving foreign reserves, moderating inflation, a more stable exchange rate regime, and growing capacity for the export of refined petroleum products—the policy priority should be to consolidate these gains, not undermine them.”
The organisation stressed that continued reliance on imported fuel could weaken investor confidence in local refineries and increase pressure on foreign exchange demand.
More insights
The CPPE further argued that import-heavy strategies expose Nigeria to external shocks linked to global oil price volatility and supply disruptions. It warned that such exposure could worsen domestic inflation and destabilise fuel pricing.
It also pointed to structural bottlenecks affecting local producers, including high financing costs, infrastructure gaps, logistics constraints, and regulatory burdens, which it says must be addressed to unlock domestic capacity.
The organisation noted that recent private sector investments in refining signal growing potential for energy self-sufficiency if policy consistency is maintained. It added that global trends are increasingly shifting toward energy security and reduced reliance on imports, making domestic production strategies more relevant in the long term.
CPPE urged policymakers to prioritise expanding refining capacity, ensuring steady crude supply to local refineries, improving infrastructure, and reducing production costs to strengthen the downstream sector.
Backstory
The debate follows the World Bank’s Nigeria Development Update, which initially recommended sustained importation of Premium Motor Spirit (PMS) to stabilise fuel supply in Nigeria.
- The report was later removed from the World Bank’s website, drawing attention to possible revisions in its policy stance.
- The April 2026 report had suggested continued fuel imports alongside a gradual shift toward a more competitive downstream petroleum market. However, it was subsequently replaced with a clarification urging reassessment in light of changing global energy conditions.
The World Bank later noted that current energy volatility makes import-dependent policy prescriptions less suitable for countries prioritising energy security and resilience. It also reaffirmed the need for carefully sequenced reforms that protect consumers while improving market efficiency.
What you should know
Nigeria’s downstream petroleum sector has undergone significant reforms in recent years, particularly following fuel subsidy removal, which exposed domestic prices to global market movements.
- While local refining capacity is gradually expanding, imports still play a major role in meeting domestic fuel demand.
- Global geopolitical tensions and energy market disruptions continue to influence supply stability and pricing dynamics across oil-importing countries, including Nigeria.
- These developments have made energy security, affordability, and supply stability central to Nigeria’s economic policy discussions.
The World Bank continues to advocate a competitive downstream market supported by regulation and targeted social protection, even as it acknowledges the need for flexibility in policy sequencing amid evolving global energy conditions.
