Title: Fuel Subsidy Removal and National Development in Nigeria: A Policy Impact Assessment
Authors: UZOR, OBIORA ANTHONY, ESIEME, CHINASA ANN
Volume: 9
Issue: 6
Pages: 110-117
Publication Date: 2025/06/28
Abstract:
The debate surrounding fuel subsidy removal in Nigeria has remained one of the most polarizing policy issues in the nation's contemporary political economy. While subsidies were initially introduced to cushion the impact of rising global oil prices on the populace, over time, the policy has been marred by inefficiencies, corruption, fiscal strain, and economic distortions. This study critically examines the impact of fuel subsidy removal on national development in Nigeria, with a particular focus on its economic, social, and infrastructural implications. This study is grounded in the Conflict Perspective, particularly Karl Marx's Social Conflict Theory. Marx (1818-1883) posited that society is inherently structured around inequality, with constant competition between social classes for limited resources such as wealth, power, and status. Relying on a combination of secondary data sources and policy analysis, the study assesses how the discontinuation of fuel subsidies has affected government revenue allocation, inflation, poverty levels, and public trust in governance. Findings reveal that the removal of fuel subsidy has not significantly impacted the living standard of the Nigerian people. The paper also highlights that the government has not significantly reinvested the money realized from fuel subsidy removal. Drawing on the findings, the study recommends among others that the government should create a clear, transparent, and independently monitored framework for channeling the funds saved from fuel subsidy removal into key sectors such as healthcare, education, infrastructure, and social welfare.