Fuel Subsidy Removal and the Ubiquity of Hardship in Nigeria: President Buhari and Lessons From King Rehoboam

Obo, Ugumanimn Bassey; Omenka, Jacob Iba; Agishi, Tabitha Venenge; Coker, Maurice Ayodele

doi:10.14738/assrj.414.2946

Cited by 3 publications

(2 citation statements)

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“…The foregoing analysis shows that the unending deregulation of petroleum products has brought untold hardships to the citizens of Nigeria because of the vicious circle of price increases and the low purchasing power of the currency arising from the devaluation of the naira (the local currency) which is often the major reason for removal of fuel subsidies. Results are consistent with Lee and Ni (2002), Akinyemi et al (2017), Obo et al (2017).as well as Lorussoa and Pieronib (2018).…”

Section: Discussion Of Findingssupporting

confidence: 89%

“…He observed that fuel subsidy is a major tool for enhancing citizen's welfare, especially among the middle and low income countries but that removal of fuel subsidies significantly influence the factors that influence transport costs and transport rates, thus leading to higher transport cost and rates. Obo et al (2017) investigated fuel subsidy removal and the ubiquity of hardships in Nigeria. They opined that removal of fuel subsidy has dire consequences on the wellbeing of the people.…”

Section: Petroleum Subsidy Removal and The Nigerian Economymentioning

confidence: 99%

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Petroleum Subsidy Withdrawal, Fuel Price Hikes and the Nigerian Economy

Inegbedion

Inegbedion²,

Obadiaru³

et al. 2020

IJEEP

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The study investigated petroleum subsidy withdrawal, fuel price hikes and the Nigerian economy. The purpose of the study was to determine the extent to which the removals of petroleum subsidies stimulate hikes in fuel prices and increases in the prices of products of other sectors in the Nigerian economy. It employed input-output model to determine the value added per sector from the computed table of flow of goods. Subsequently, the impacts of reductions in petroleum subsidies (10%, 20%, 30%, 40% and 50%) on the prices of products from the other sectors were computed. Results showed that reduction in petroleum subsidies stimulate increases in prices of petroleum products and such increases trigger increases in transport fares; increases in transport fares subsequently lead to increases in prices of other products owing to the degree of interdependency among the various sectors. The need for policy makers to be mindful of the economic implications of subsidy removal was suggested, among others.

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Section: Discussion Of Findingssupporting

confidence: 89%

Section: Petroleum Subsidy Removal and The Nigerian Economymentioning

confidence: 99%

Petroleum Subsidy Withdrawal, Fuel Price Hikes and the Nigerian Economy

Inegbedion

Inegbedion²,

Obadiaru³

et al. 2020

IJEEP

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Perceived Effect of Fuel Price Hike on Farming Households in Imo State

Juochi P.

2024

African Journal of Agriculture and Food Science

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The study assessed the perceived effect of fuel price hike among farming households in Imo State. The study described the socio-economic characteristics of farming households in Imo State; ascertained farming households’ awareness of fuel price hike; identified the perceived causes of fuel price hike; ascertained the perceived effect of fuel price hike on farming activities among farming households in Imo State and identified the coping strategies used among farming households to cushion the effect of fuel price hike in Imo State. A multi-stage sampling was adopted in selecting 120 farming households for the study. Primary data were used for the study using a structured questionnaire. Data analysis employed percentages, means, frequencies and mean score analysis. The result on the awareness of the effect of fuel price hike among farming household showed that all the farmers were aware (100%). farming households perceived fuel subsidy removal (x̄=3.7), instability in government policies (x̄ =3.5), high cost of importation of refined fuel (x̄ =3.4), Non-functional of local refineries (x̄ =3.3) among others as the causes of fuel price hike. Farming households perceived increased cost of transportation for farm inputs (x̄ =3.9), Increased cost of production/farming activities like ploughing, clearing etc(x̄=3.9) Increased price of farm produce (x̄ =4.0), Increased food prices (x̄=4.0), decreased agricultural productivity (x̄=3.4), Limited access to agricultural machinery and equipment,( x̄ =3.3), increased in transportation of farm produce to the market (x̄ =3.4) as the effects of fuel price hike. The highest ranking coping strategies used by farming households were trekking some distances to reduce the cost of transportation (Ranked 1st), Minimising spending habits due to fuel price increase (2nd), Explored the use of alternative energy sources e.g solar panels for irrigation, charcoal, firewood (3rd). Explore the possibility of collective purchasing or bulk buying with others to reduce individual costs (4th) and skipping meals (5th). Educational level, household size and access to credit were the significant socioeconomic variables influencing farming households’ perceived effect of fuel price hike. The study therefore recommends that Nigeria's crude oil should be refined domestically so that the importation of refined fuel can be banned which will reduce the cost of refining and pump price.

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Fuel Subsidy Removal and Macroeconomic Performance in Nigeria

Herbert Aniemeke

2024

African Journal of Economics and Sustainable Development

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The government of Nigeria removed fuel subsidy on the premise that fuel subsidy is a drain on government finances, causes macroeconomic instability, and generates adverse social welfare in the country. The objective of this paper is to examine the effect of fuel subsidy removal on macroeconomic performance in Nigeria. The paper adopts a desk review method and obtains secondary data from the documents of reputable organizations such as the Central Bank of Nigeria, the National Bureau of Statistics, and the Nigerian National Petroleum Company Ltd. Descriptive statistics was employed for the analysis of data. The study found out that the removal of fuel subsidy resulted in the increase of premium motor spirit price across the country generating inflationary trend. It improved revenue generation for government expenditure, curtailed cross border smuggling and corruption inherent in the downstream sector of the petroleum sector. It was based on these findings that the paper recommends a proper coordination of the fiscal policies and the Central Bank of Nigeria to effectively manage the macroeconomic effect of the subsidy removal. It is also important for the government to develop an effective communication strategy to engage stakeholders on the necessity for the subsidy removal and put in place an effective palliative measure to alleviate the attendant adverse conditions that it generated.

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Fuel Subsidy Removal and the Ubiquity of Hardship in Nigeria: President Buhari and Lessons From King Rehoboam

Cited by 3 publications

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Petroleum Subsidy Withdrawal, Fuel Price Hikes and the Nigerian Economy

Petroleum Subsidy Withdrawal, Fuel Price Hikes and the Nigerian Economy

Perceived Effect of Fuel Price Hike on Farming Households in Imo State

Fuel Subsidy Removal and Macroeconomic Performance in Nigeria

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