The Centre for the Promotion of Private Enterprise has explained why the Nigerian government should reject the World Bank proposal on fuel imports to curb inflation.
CPPE said the move would be a counterproductive economic policy direction.
The chief executive officer of CPPE, Dr. Muda Yusuf, disclosed this in a statement at the weekend.
Recall that the World Bank in its Nigeria Development Update had recommended the reopening of the PMS import to curb inflation.
The World Bank proposal had received backlash from experts and Nigerians.
In a reversal to its earlier policy recommendation, the World Bank, in a statement on Thursday, said in the case of Nigeria, the country should focus on targeted support.
In reaction to the World Bank’s controversial stance on the fuel import proposal, CPPE at the weekend urged the Nigerian government to vehemently reject the proposal.
According to CPPE, import liberalization is not a sustainable solution to Nigeria’s supply-side challenges.
CPPE said the import liberalization would further expose the country to greater external shocks owing to current global crude oil price volatility caused by the nearly seven-week Iran-United States-Israel war.
“Nigeria’s development trajectory must be anchored on a production-driven growth model, characterized by strong domestic refining capacity, a competitive manufacturing sector, robust agricultural systems, and energy and food security.
“The CPPE, therefore, urges policymakers to reject import-dependent strategies and prioritize reforms that build a resilient, self-reliant, and industrialized Nigerian economy,” CPPE stated.
Why Nigerian govt should reject the World Bank’s fuel import proposal — CPPE