As debates over the return of fuel subsidy intensify, the Independent Media and Policy Initiative has warned that former Vice President Atiku Abubakar’s proposal to restore subsidy could discourage foreign investment and undermine regulatory confidence in Nigeria.
The policy think-tank said the proposal could send a negative signal to international investors by suggesting that Nigeria was returning to regulated petrol pricing after the Federal Government had spent more than three years pursuing deregulation of the downstream oil sector.
The group made its position known in a policy statement issued in Abuja yesterday by its Chairman, Omoniyi Akinsiju.
Atiku, in his proposed economic recovery plan, had advocated a shift from consumption subsidy to production subsidy, with local refineries receiving crude at a discounted price to enable them to sell refined petroleum products at lower prices to consumers.
However, IMPI argued that the proposed model could create uncertainty for investors if commercial operators were required to comply with politically determined pricing arrangements.
