Economic Implications of Fuel Subsidy Removal in Nigeria: Challenges and Prospects

Abstract

This paper is an assessment of the economic implications of fuel subsidy removal in Nigeria with specific focus on the challenges and prospects. To do this, we examined the origin of fuel subsidy removal in Nigeria and the over all effect. The work adopted a mixed research design using a content approach technique. Data were obtained through secondary and primary sources of the content approaches such as oral, written, interview, articles, journals, online newspapers and group focus discussion. Measures were introduced in form of palliatives, loans, wage award and grants. The result shows that, fuel prices shock increases generating significantly and persistently economic hardship, death, poverty and inflation while the exchange rate depreciate in Nigeria currency with a generation of socio-economic implications: high economic insatiability, corruption and shock on fuel prices. The study recommended adequate deployment of well trudged safety measures, evolution of sustainable adjustment mechanism and increase in salaries to all civil servants in the country.