Your source data is an external .csv file. A libname is for access to (SAS) tables, a filename is for access to external files, a set statement gets used to read a table (and not a file like in your code).
What you need to do is first to read your external file into a SAS table that you then can use in a SAS datastep or SAS Proc.
Below SAS docu example should show you the way: Example 4: Importing a Comma-Delimited File with a CSV Extension
If you need full control over how external data gets mapped into a SAS table then use a SAS datastep/infile, input instead of Proc Import.
Proc Import for a text file/.csv will actually also generate such data step code which it writes to the SAS log. This should give you some guidance how such code looks like.