IMPI warns Atiku fuel subsidy plan

The Independent Media and Policy Initiative (IMPI), a Nigerian think tank, issued a policy statement on August 25, 2026, criticizing former Vice President Atiku Abubakar's campaign promise to restore fuel subsidies if elected president. IMPI argues that the proposal, which would shift from consumption to production subsidies by providing discounted crude to local refineries, would undermine the Petroleum Industry Act 2021, create fiscal illusions, and lead to hidden revenue deductions. The think tank warns that such a policy reversal would scare away international investors, damage Nigeria's sovereign credit ratings, and recreate black markets and fuel shortages. IMPI also notes that subsidies are regressive, benefiting wealthier households, and could raise transport fares by up to 40% above deregulated rates. The statement comes amid ongoing debate over the impact of President Bola Tinubu's 2023 subsidy removal, which saw petrol prices rise from N175 to about N1,300 per litre by May 2026.