IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i4p1777-1784.html
   My bibliography  Save this article

The Microeconomic and Macroeconomic Implications of Fuel Subsidy Removal in Nigeria

Author

Listed:
  • Ejime Herbert Aniemeke

    (Economics Department, Nile University of Nigeria)

Abstract

This paper examines the microeconomic and macroeconomic implications of fuel subsidy removal in Nigeria 2023 while adopting a desk review method using discourse analysis methodology. The paper offers some insights into the implications of fuel subsidy, drawing from the interplay of economic, political, environmental, and societal factors necessitating a holistic approach. The removal of fuel subsidy in Nigeria has prompted a profound shift with far-reaching implications across economic, social, and environmental circles. Nigeria, as an oil-dependent economy has long relied on fuel subsidy to ensure affordable fuel prices for its citizens. However, in recent years, the country has faced numerous challenges including the rising rate of inflation, unemployment and increase in poverty rates. Based on these challenges, the decision to remove petroleum subsidy has had a significant impact on the economy. To achieve the objective highlighted in the paper, the background of the problem was discussed, review of related literature was undertaken, and possible recommendations were suggested towards mitigating the severe effect of fuel subsidy removal on the general living standard of the citizens and the economy.

Suggested Citation

  • Ejime Herbert Aniemeke, 2024. "The Microeconomic and Macroeconomic Implications of Fuel Subsidy Removal in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 1777-1784, April.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:1777-1784
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-4/1777-1784.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/the-microeconomic-and-macroeconomic-implications-of-fuel-subsidy-removal-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Antimiani, Alessandro & Costantini, Valeria & Paglialunga, Elena, 2023. "Fossil fuels subsidy removal and the EU carbon neutrality policy," Energy Economics, Elsevier, vol. 119(C).
    2. Siddig, Khalid & Aguiar, Angel & Grethe, Harald & Minor, Peter & Walmsley, Terrie, 2014. "Impacts of removing fuel import subsidies in Nigeria on poverty," Energy Policy, Elsevier, vol. 69(C), pages 165-178.
    3. Cecile Couharde & Sara Mouhoud, 2020. "Fossil Fuel Subsidies, Income Inequality, And Poverty: Evidence From Developing Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 981-1006, December.
    4. Niklas Harring & Erik Jönsson & Simon Matti & Gabriela Mundaca & Sverker C. Jagers, 2023. "Cross-national analysis of attitudes towards fossil fuel subsidy removal," Nature Climate Change, Nature, vol. 13(3), pages 244-249, March.
    5. Mr. David Coady & Valentina Flamini & Louis Sears, 2015. "The Unequal Benefits of Fuel Subsidies Revisited: Evidence for Developing Countries," IMF Working Papers 2015/250, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shittu, Ibrahim & Abdul Latiff, Abdul Rais & Baharudin, Siti ‘Aisyah, 2024. "Assessing the compensation and reinvestment plans for fuel subsidy rationalization in Nigeria: A dynamic computable general equilibrium approach," Energy, Elsevier, vol. 293(C).
    2. Evans, Olaniyi & Nwaogwugwu, Isaac & Vincent, Olusegun & Wale-Awe, Olawale & Mesagan, Ekundayo & Ojapinwa, Taiwo, 2023. "The socio-economics of the 2023 fuel subsidy removal in Nigeria," MPRA Paper 118360, University Library of Munich, Germany.
    3. Peltovuori, Ville, 2017. "Fossil fuel subsidies in the Pacific island context: Analysis of the case of Kiribati," Energy Policy, Elsevier, vol. 111(C), pages 102-110.
    4. Nils Droste & Benjamin Chatterton & Jakob Skovgaard, 2024. "A political economy theory of fossil fuel subsidy reforms in OECD countries," Nature Communications, Nature, vol. 15(1), pages 1-14, December.
    5. Jun E Rentschler & Nobuhiro Hosoe, 2017. "Illicit dealings: Fossil fuel subsidy reforms and the role of tax evasion and smuggling," GRIPS Discussion Papers 17-05, National Graduate Institute for Policy Studies.
    6. Sakiru Adebola Solarin, 2022. "Modelling Two Dimensions of Poverty in Selected Developing Countries: The Impact of Fossil Fuel Subsidies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 357-379, February.
    7. Omotosho, Babatunde S., 2020. "Oil price shocks, fuel subsidies and macroeconomic (in)stability in Nigeria," MPRA Paper 105464, University Library of Munich, Germany.
    8. Matallah, Siham & Boudaoud, Souhila & Matallah, Amal & Ferhaoui, Mustapha, 2023. "The role of fossil fuel subsidies in preventing a jump-start on the transition to renewable energy: Empirical evidence from Algeria," Resources Policy, Elsevier, vol. 86(PB).
    9. Ozili, Peterson K, 2023. "Implications of fuel subsidy removal on the Nigerian economy," MPRA Paper 118798, University Library of Munich, Germany.
    10. Li, Zhi & Zhao, Qing & Guo, Hong & Huang, Ruting, 2024. "Impact of fossil fuel subsidies on energy-saving technological change in China," Energy, Elsevier, vol. 286(C).
    11. Rentschler, Jun, 2016. "Incidence and impact: The regional variation of poverty effects due to fossil fuel subsidy reform," Energy Policy, Elsevier, vol. 96(C), pages 491-503.
    12. Yuru Guan & Jin Yan & Yuli Shan & Yannan Zhou & Ye Hang & Ruoqi Li & Yu Liu & Binyuan Liu & Qingyun Nie & Benedikt Bruckner & Kuishuang Feng & Klaus Hubacek, 2023. "Burden of the global energy price crisis on households," Nature Energy, Nature, vol. 8(3), pages 304-316, March.
    13. Tancrède Voituriez, 2020. "The quest for green welfare state in developing countries," Working Papers hal-02876972, HAL.
    14. Ma, Hongchao & Zhang, Haonan, 2024. "Can green energy expansion develop the mineral resource market in East Asia?," Resources Policy, Elsevier, vol. 90(C).
    15. Khan, Aamir & Walmsley, Terrie & Mukhopadhyay, Kakali, 2019. "Trade Liberalization and Income Inequality: The Case for Pakistan," Conference papers 333125, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Emodi, Nnaemeka Vincent & Boo, Kyung-Jin, 2015. "Sustainable energy development in Nigeria: Current status and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 356-381.
    17. Ebers Broughel, Anna, 2019. "On the ground in sunny Mexico: A case study of consumer perceptions and willingness to pay for solar-powered devices," World Development Perspectives, Elsevier, vol. 15(C), pages 1-1.
    18. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    19. Elfarra, Barakat & Yasmeen, Rizwana & Shah, Wasi Ul Hassan, 2024. "The impact of energy security, energy mix, technological advancement, trade openness, and political stability on energy efficiency: Evidence from Arab countries," Energy, Elsevier, vol. 295(C).
    20. Fahman Fathurrahman & Bora Kat & Uğur Soytaṣ, 2017. "Simulating Indonesian fuel subsidy reform: a social accounting matrix analysis," Annals of Operations Research, Springer, vol. 255(1), pages 591-615, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:1777-1784. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.