By Sadiq Muhammed
One of the most intellectually lazy arguments I have heard is the claim that reinstating fuel subsidies would inevitably drive investors away and force businesses to shut down. This argument is not only simplistic but also ignores the fundamental principles of economic policy and the realities of doing business in Nigeria.
The most important question is this, If removing fuel subsidies was supposed to create a more favourable investment climate, why did several businesses struggle or shut down after the removal? And why should we assume that reinstating some form of subsidy would automatically destroy investments that survived the period of its removal?
Let us be clear,investors do not make decisions based on fuel subsidy policy alone. They consider the total business environment, including exchange-rate stability, inflation, interest rates, infrastructure, security, access to credit, taxation, purchasing power, and the predictability of government policies. A country where production costs are rising uncontrollably, the currency is unstable, and consumers can no longer afford basic goods is hardly an attractive investment destination simply because the government has removed fuel subsidies.
Furthermore, removing subsidies does not automatically guarantee economic growth, just as reinstating them does not automatically guarantee economic collapse. The real question is whether a policy produces measurable improvements in productivity, employment, living standards, and economic competitiveness. If subsidy removal increases government revenue but simultaneously raises transportation costs, production expenses, food prices, and poverty, then its overall success must be assessed against those consequences.
There is also a fundamental question of accountability, what has happened to the savings generated by subsidy removal? How much has been invested in public transportation, electricity, healthcare, education, security, and productive infrastructure? If citizens are expected to endure severe economic hardship in exchange for long-term benefits, the government must demonstrate transparently that those benefits are materialising. Economic reform should not become an article of faith that citizens are forbidden to question.
Of course, fuel subsidies have genuine drawbacks. Poorly designed subsidies can encourage smuggling, create opportunities for corruption, distort market incentives, and impose enormous fiscal costs. These are legitimate concerns that deserve serious consideration. But acknowledging these problems does not mean that the only alternative is to abandon all forms of fuel-price support. A carefully designed, transparent, and fiscally sustainable intervention could protect vulnerable households while minimising waste and economic distortions.
The debate should therefore be about evidence, not economic dogma,measurable outcomes, not ideological loyalty,and the welfare of Nigerians, not the approval of foreign institutions or investors.
What I find particularly disturbing is the tendency of some Nigerians to treat every policy recommendation associated with international financial institutions or powerful foreign interests as unquestionable wisdom. They defend such policies with the fervour of disciples, without independently examining their assumptions, consequences, or suitability for Nigeria’s unique economic circumstances.
A serious mind evaluates policies on their merits. It asks questions, examines evidence, considers alternatives, and remains willing to change its position when the facts demand it. It does not surrender its intellectual independence merely because an argument comes from a powerful institution or is repeated by influential people.
Nigeria needs economic policies that work for Nigerians, not policies that Nigerians are compelled to defend simply because someone has declared them economically inevitable.
Blindly defending a policy is not economic literacy. Refusing to question its consequences is not sophistication. And mistaking unquestioning obedience to economic orthodoxy for intelligence is, quite frankly, the height of intellectual llazinessWho did this to us?
Muhammed can be reached at sadiqu2013@gmail.com
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