A policy think-tank, the Independent Media and Policy Initiative (IMPI), has warned that a campaign pledge by former Vice President Atiku Abubakar to reinstate petrol subsidies risks scaring off foreign investors and undermining Nigeria’s economic stability ahead of the 2027 general election.
In a policy statement released in Abuja by IMPI Chairman Omoniyi Akinsiju, the group argued that Atiku’s proposed model—which involves offering discounted crude oil to domestic refineries to lower pump prices—is economically unsustainable and signals regulatory unpredictability to international markets.
According to the think-tank, forcing commercial entities like the state-owned NNPC Limited and private refiners into politically mandated pricing structures would undermine the Petroleum Industry Act (PIA) of 2021, freezing vital capital inflows and public-private partnerships needed for critical infrastructure.
IMPI further contended that the proposal functions as a fiscal illusion. By deducting subsidy costs through discounted crude allocations before revenues enter the Federation Account, the plan would strip federal, state, and local governments of essential funds for healthcare, education, and rural development.
The group added that re-regulating petrol prices would likely trigger urban fuel concentration, fuel black-market resale in remote areas, and ultimately drive up food transport costs, worsening long-term inflation for vulnerable populations.
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