AN EXAMINATION OF THE BENEFITS AND CHALLENGES OF THE FUEL SUBSIDY REMOVAL ON THE NIGERIAN ECONOMY IN THE FOURTH REPUBLIC

Abstract

The removal of fuel subsidy has emerged as a persistent issue in the second quarter of Nigeria's Fourth Republic. Despite the long-term benefits of the policy, Nigerians have consistently resisted attempts by the regime to revert to it. However, this government policy has received negative feedbacks from the public, public institutions, professional associations, and labour unions. The recent pronouncement by the newly inaugurated administration of Senator Bola Ahmed Tinubu as President elect of the Federal Republic has resulted to high prices of petrol and transportation fares all over the nation, even if it has not been fully implemented. It is based on this development that this study examined the benefits and challenges of fuel subsidy relapse on national economy. Descriptive analysis was adopted, and qualitative method of data collection was utilised to collect data for the study. Secondary sources of data, notably, books, journals, dailies, periodicals, and internet materials were utilized to obtain data. It was found out that several attempts by the previous administrations to reverse fuel subsidy policy have high negative effects on the citizens because prices of petroleum products, food items and transportation increases. The study recommends among others that the central government should pay special attention to the effects of the policy on the masses by providing palliatives to alleviate the sufferings of the people. In addition, government should provide steady electricity, regulate prices of goods and services, including transportation fare and provide adequate social amenities and infrastructures to cushion its effects on the citizens. Keywords: Subsidy, Fuel, Fuel subsidy, Subsidy Removal, Nigerian Economy, Regime, Benefits, Challenges.