By Babatola Aderibigbe
The Centre for the Promotion of Private Enterprise (CPPE) has criticised recent advice by the World Bank urging Nigeria to sustain fuel imports, warning that such a position could undermine the country’s drive for energy security and local refining capacity.
In a statement at the weekend, CPPE said continued reliance on imported petroleum products exposes the economy to foreign exchange pressures, supply disruptions and price volatility, insisting that Nigeria must prioritise domestic refining to achieve long-term stability in the downstream sector.
The World Bank had reportedly advised that maintaining fuel imports remains necessary in the short term to ensure supply stability and prevent shortages, particularly as the country transitions to a deregulated market following the removal of petrol subsidy.
But Director of CPPE, Muda Yusuf, argued that while imports may offer temporary relief, they are not a sustainable solution for Africa’s largest oil producer.
“Nigeria cannot continue to depend on imported fuel indefinitely. This approach places enormous pressure on foreign exchange and exposes the economy to external shocks. What is needed is a deliberate strategy to strengthen domestic refining capacity,” he said.
He noted that with ongoing investments in refineries, including modular facilities and large-scale plants, the country is well-positioned to reduce import dependence and conserve scarce foreign exchange.
According to CPPE, the emphasis should be on creating an enabling environment for local refiners through improved access to crude supply, stable regulatory policies and infrastructure support.
The think tank warned that continued import dependence could weaken the gains from recent reforms in the oil and gas sector, including deregulation of the downstream market.
Industry analysts also expressed concerns that heavy reliance on imports could limit job creation opportunities and reduce value addition within the domestic economy.
They argued that boosting local refining would not only stabilise supply but also deepen industrial linkages and enhance Nigeria’s competitiveness in the regional energy market.
However, some experts note that in the near term, imports may still play a complementary role, especially in bridging supply gaps as domestic refining capacity gradually ramps up.
Despite this, CPPE maintained that policy direction must remain firmly focused on self-sufficiency, stressing that a balanced transition strategy is critical to ensuring energy security, price stability and sustainable economic growth.
