Fuel subsidy proposal may scare investors, IMPI warns

The Independent Media and Policy Initiative (IMPI) has expressed concern that former Vice President Atiku Abubakar's proposal to restore fuel subsidies could discourage foreign investment and undermine regulatory confidence in Nigeria. IMPI argues that the proposal could send a negative signal to international investors by suggesting that Nigeria is returning to regulated petrol pricing after spending more than three years pursuing deregulation of the downstream oil sector.

The think-tank further contends that the proposal would create uncertainty for investors and compel operators to work within politically mandated pricing formulas, undermining the Petroleum Industry Act 2021 and creating an illusion of price reduction while transferring the cost of the subsidy from direct government payments to discounted crude oil allocations.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.