Nigeria faces potential losses of over $50 billion in foreign direct investment (FDI) due to plans by presidential candidate Atiku Abubakar to restore fuel subsidies, according to the International Monetary Partnership Institute (IMPI). The report highlights concerns that the policy could deter international investors already attracted by Nigeria’s oil sector.
Atiku, running for the African Democratic Congress, has positioned his subsidy restoration plan as a way to stabilize fuel prices and support local industries. However, economic analysts warn that such a move could trigger a financial crisis, similar to past attempts that led to economic downturns.
The IMPI report suggests that the policy might lead to a sharp decline in foreign investment, as investors fear instability in the energy market. This comes at a time when Nigeria is trying to attract more foreign capital to boost its economy.
The debate over subsidies continues to divide political and economic circles, with some arguing that the policy could help reduce inflation, while others warn of its long-term economic risks.
