The Centre for the Promotion of Private Enterprise (CPPE) has warned that an unbridled import liberalisation could be injurious to the country's capacity to accelerate its industrial development, adding that no country has ever imported its way to industrial greatness.
Background of the Warning
The warning came against the backdrop of new licences granted to six petroleum marketers by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import 600,000 metric tonnes of fuel and the call for free import of refined petroleum products by the World Bank. The World Bank, in its April 2026 Nigeria Development Update (NDU), advised Nigeria to urgently reopen the petrol import market and dismantle long-standing trade restrictions to moderate inflation risks associated with tightening supply and a spike in global oil prices.
That advice received adverse reactions from different groups and economists who said accepting such advice could weaken Nigeria's capacity for domestic production. The CPPE, in a policy brief on Sunday, signed by its Chief Executive Officer, Dr Muda Yusuf, said the debate goes far beyond petroleum products.
CPPE's Stance on Economic Philosophy
“It speaks to the very architecture of Nigeria's economic philosophy, the future of industrialisation, the resilience of the macroeconomy and, ultimately, the preservation of the country's economic sovereignty”, it said. “No nation has ever imported its way to industrial greatness. Prosperous economies are built on production, refining, manufacturing, value addition and the strengthening of domestic productive capacity. Countries that become excessively dependent on imports inevitably export jobs, weaken domestic industries, erode local investments and mortgage their economic sovereignty.”
“Nigeria must therefore avoid drifting into a policy regime that undermines domestic production in the name of competition or liberalisation.” It said at a time when every serious economy protects its strategic sectors, it will be foolhardy for Nigeria to go in the opposite direction.
Global Examples of Protectionism
“The United States is deploying tariffs and industrial subsidies to support manufacturing competitiveness. China aggressively protects strategic industries. Europe is increasingly embracing industrial policy intervention. India continues to deepen domestic manufacturing through its 'Made in India' agenda,” CPPE said, adding that industrialisation has never been built on extreme liberalisation and no nation develops by turning itself into an attractive destination for imported goods.
Call for Economic Pragmatism
The centre said: “Self-reliance is not economic isolationism. It is economic pragmatism anchored on national interest. It is the deliberate strengthening of domestic productive capacity to reduce vulnerability to external shocks and reinforce long-term economic resilience. A country that cannot refine its own petroleum products despite being a major crude oil producer exposes itself to profound economic vulnerability. Energy security is national security. A country that persistently imports what it should ordinarily produce locally gradually weakens its productive base, destroys industrial capabilities and compromises long-term economic stability.”
It said Nigeria cannot achieve meaningful industrialisation without deliberate and sustained support for domestic production. “Industrial transformation requires strategic protection, policy consistency, strong domestic value chains, support for local investors, and a reduction in import dependence. No economy becomes prosperous by importing what it can produce domestically. The future of Nigeria's economic resilience lies in production, refining, manufacturing and value addition, not in the perpetuation of import dependence.”
“Nigeria must therefore decide whether it wishes to build a production economy or remain trapped within a consumption economy. History has repeatedly shown that nations which neglect domestic production eventually weaken their currencies, compromise economic sovereignty and expose themselves to severe external vulnerabilities,” CPPE stated.
