IMPI Warns Atiku's Fuel Subsidy Plan Could Bankrupt Nigeria

The Independent Media and Policy Initiative (IMPI) issued a policy statement on Tuesday, signed by its Chairman Dr Omoniyi Akinsiju, condemning former Vice President Atiku Abubakar's proposal to restore fuel subsidy if elected President. IMPI characterized the proposal as a populist move that could lead to significant financial and economic challenges for Nigeria.

They argued that while the proposal might initially lower fuel prices, it would ultimately bankrupt the country, damage its sovereign credit ratings, and reverse economic progress achieved in recent years. The think tank highlighted that Atiku's plan undermines the Petroleum Industry Act (PIA) 2021 and could create a black market for fuel, exacerbating transport costs and food inflation.

IMPI warned that reintroducing price controls would signal volatility in Nigeria's investment climate, potentially leading to sell-offs in Eurobonds and increased sovereign yields. Additionally, the proposal could harm local refineries by disrupting their pricing structures, increasing regulatory risks, and threatening the banking sector's stability.