The Independent Media and Policy Initiative (IMPI) has issued a stern critique of former Vice President Atiku Abubakar’s economic platform, cautioning that any attempt to reintroduce fuel subsidies would undermine market deregulation and compromise regulatory credibility across Nigeria’s energy market.
The think-tank delivered the assessment in a policy document released on Tuesday, August 25, 2026, in Abuja. Titled “Atiku’s Fuel Subsidy Restoration Campaign Promise Fails Litmus Test of Practicability and Sustainability,” the report was signed and delivered by IMPI Chairman Dr. Omoniyi Akinsiju.
Atiku’s economic agenda, detailed in his Atiku Economic Recovery Plan (AERP), outlines a production-side intervention that would supply crude oil to local refiners at discounted rates, aiming to lower pump prices for consumers.
However, IMPI’s analysis identified severe structural risks associated with the proposal;
The erosion of Industry framework by Mandating price concessions for commercial operations directly conflicts with the free-market mandate of the Petroleum Industry Act (PIA) 2021. Dr. Akinsiju cautioned that overriding this legislation sends destabilizing signals to international investors and freezes Public-Private Partnerships (PPPs).
Offering discounted crude to domestic refiners functions as an off-the-books deduction before revenues hit the Federation Account. This reduction directly starves state and local governments of the funds required for critical social infrastructure, including rural roads and healthcare services.
Artificial pricing mechanisms remove the economic incentive for distributors to transport fuel to remote communities. IMPI warned this would concentrate petrol stocks exclusively in high-demand urban centers like Lagos, Abuja, Kano, and Port Harcourt, triggering regional fuel shortages, black-market markups, and sharp spikes in local transit fares.
The analysis emphasized that fuel price subsidies overwhelmingly subsidize higher-income households owning multiple vehicles, rather than delivering targeted relief to low-income populations dependent on public transit.
In response to the report, Phrank Shaibu, Senior Special Assistant on Public Communication to Atiku Abubakar, defended the plan, stating it is not a return to legacy import-subsidy schemes. Shaibu characterized the policy as a capped, independently audited production support designed to stabilize living costs until domestic refining fully matures.
Despite these assurances, IMPI maintained that retreating from full market deregulation sacrifices long-term economic stability for short-term political expedience.
