BETWEEN COMMON SENSE AND POPULISM

Seun Awogbenle, a development economist and founder of Policraft, argues that the fight over Nigeria's fuel subsidy is not merely ideological but a clash between common sense and dangerous populism. The controversy pits those who oppose the reversal of fuel subsidies against those seeking to return the country to the days of the subsidy regime.

Awogbenle asserts that the nation's priorities must be placed above personal ambitions and political motivations, emphasizing that the fuel subsidy regime has created a significant hole in public finances and hindered essential investments. He also highlights the lack of a funding plan for the proposal, noting that returning fuel prices to pre-reform levels would cost an estimated N20 trillion.

Awogbenle warns that such a move would lead to an unstable investment climate, making businesses unattractive and potentially causing foreign investments to dry up. He supports the government's efforts to protect vulnerable populations from the impact of oil prices, particularly in food and transportation, and calls for targeted support and direct relief to alleviate the effects of the current global oil price shock.