Dare Babalola
The Centre for the Promotion of Private Enterprise (CPPE) has released a policy brief advocating for strategic protectionism to drive Nigeria’s industrialisation. According to the CPPE in a brief signed by Muda Yusuf, its CEO, Nigeria’s excessive dependence on imports has weakened its productive base, eroded competitiveness, and exposed the economy to external shocks.
The CPPE believes that industrialisation is central to Nigeria’s long-term economic growth, job creation, and national sovereignty. History and global experience show that no country has achieved industrialisation through indiscriminate trade liberalisation.
“Nigeria’s journey to sustainable industrialisation must be anchored on strategic, time-bound protectionism, not indiscriminate liberalisation, no country has industrialised through unrestrained exposure to imports,” Yusuf said.
The Centre noted that the recent 15% import duty on refined petroleum products represents a positive policy proposition.
The Nigerian Government announced the introduction of the import charge on Thursday, aiming to stimulate domestic refining and reduce dependence on imports with the policy.
Much as concerns are emerging that the measure could spur an increase in fuel prices, CPPE said it is “a progressive and corrective policy” that may help revive local refineries, conserve foreign exchange and create employment opportunities.
The CPPE also noted that sectors that enjoyed measured protection, such as cement, flour, and beverages, have recorded remarkable domestic growth and value addition. This, according to the CPPE, is evidence that strategic protectionism can work in Nigeria.
Yusuf advocated for a strategic protectionist framework, particularly in key industrial sectors, as the foundation for Nigeria’s industrialisation drive. This approach, according to the CPPE, will encourage domestic investment, foster local value addition, and allow firms to achieve efficiency and scale before competing globally.
He argued that the continuous importation of petroleum products over the past two decades has imposed immense costs on the Nigerian economy, adding that the consequences include sustained pressure on foreign exchange reserves, fiscal instability, and the collapse of domestic refining.
The CPPE described the 15% import duty on refined petroleum products as a welcome development and a progressive and corrective measure.
“The 15 per cent import duty on refined petroleum products is a forward-looking policy that can transform Nigeria’s industrial landscape if reinforced with complementary reforms,” Yusuf said.
