Petroleum Subsidy Withdrawal, Fuel Price Hikes and the Nigerian Economy

Inegbedion, Henry; Inegbedion, Emmanuel; Obadiaru, Eseosa; Asaleye, Abiola John

doi:10.32479/ijeep.8307

Cited by 7 publications

(7 citation statements)

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“…This also harmed industrial firms that depended heavily on imported machinery, replacement parts, and raw materials [51][52][53][54]. As a result, this result can be explained in part by the notion that advanced nations are forcing their conditions on former colonial countries like Nigeria, who have become heavily reliant on natural resource exports like oil [55]. Furthermore, one of the most problematic aspects of the IMF is the widespread belief among recipients that they would be unable to overcome any prospective economic setback without the support or "benefit program" of foreign industrialized "rich" countries [56].…”

Section: Resultsmentioning

confidence: 99%

Analysis on IMF Loan Conditions with more Detrimental Impact on the Economy: A Case Study of Nigeria

Shafiu

Salleh

Bala

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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Past studies have shown that nations that borrow money from the International Monetary Fund (IMF) have greater rates of poverty, unemployment, and inflation than countries that do not borrow from the IMF. This is despite the fact that the IMF claims that fostering economic development is one of its objectives. The IMF loans conditions that are shown to have the most detrimental impact on economies are the subject of this study, which focused, specifically on Nigeria. In order to obtain data for this research, primary data sources such as official documents, newspapers, journals, and other similar sources were utilized, and Neoliberal theory was employed as the theoretical foundation for the study. Our research showed that the IMF loan conditions of currency devaluation and subsidy removal negatively impacted not just Nigeria’s economy but also the nation’s overall standard of living. As a result, it was recommended that the government should make an effort to diversify the economy, modify its relations with international financial organizations like the IMF and the World Bank, and give the populace access to the necessary resources to improve their standard of living.

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Section: Resultsmentioning

confidence: 99%

Analysis on IMF Loan Conditions with more Detrimental Impact on the Economy: A Case Study of Nigeria

Shafiu

Salleh

Bala

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

View full text Add to dashboard Cite

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“…Furthermore, the nation was exposed to the manipulation of independent industries by eliminating subsidies. This is because the full removal of subsidy would give these industrialists a reason or excuse to increase the price of fuel uncontrollably, and so the victims of abuse will still remain members of the public (Adebayo, 2018;ANAGUN, 2020;Inegbedion, Inegbedion, Obadiaru, & Asaleye, 2020;O'Neil, 2019;Sheyin, 2018). In most cases, however, Nigerian leaders were more interested about the satisfaction that they would achieve from any policy they would execute and not think about anything that would contribute to the growth of the people and the country (Babatunde, 2018;Sorensen, 2018).…”

Section: Its Implication On Standards Of Living In Nigeriamentioning

confidence: 99%

Nigeria-Imf Relationship and Its Impact on Human Rights and Standard of Living in Nigeria

Shafiu

Salleh

2021

yst

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<em>This study examines the relationship between Nigeria and the International Monetary Fund (IMF) and also traces its impact on Human Rights and Standard of living. Therefore, it assesses the impact of IMF on Human Rights and the living standards of Nigerians, as it was assumed that Nigeria's relationship with the IMF was the key cause of poverty, social insecurity, economic inequalities and a decrease in people's living standards. Primary data sources, such as official records, newspapers, journals, and books, were used to gather data for research, while the Theory of Human Rights and Dependency Theory was used as the basis for this study. The study discovered that externally enforced economic liberalization does not enhance economic development and degrades government human rights practices. The study also assumed that Nigeria's relationship with the IMF was more detrimental than positive and thus had a direct negative impact on the general standard of living of the people. It was suggested that the government should attempt to diversify the economy, reshape its relationship with international financial institutions, such as the IMF and the World Bank, and provide people with adequate facilities to raise their living standards.</em>

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“…Badly targeted subsidy programmes are alleged to have worsened macroeconomic problems (KPMG, 2023). There is extant literature on the macroeconomic implications of oil price shocks and fuel subsidies, especially in resource-rich emerging economies (Inegbedion et al, 2020). Consequently, some focused on the potential impacts of fuel subsidy reforms on the domestic economies of oil-producing countries (KPMG, 2023;NESG, 2022;PWC, 2023;Breton & Mirzapour, 2016;Dennis, 2016).…”

Section: Introductionmentioning

confidence: 99%

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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Petroleum Subsidy Withdrawal, Fuel Price Hikes and the Nigerian Economy

Cited by 7 publications

References 10 publications

Analysis on IMF Loan Conditions with more Detrimental Impact on the Economy: A Case Study of Nigeria

Analysis on IMF Loan Conditions with more Detrimental Impact on the Economy: A Case Study of Nigeria

Nigeria-Imf Relationship and Its Impact on Human Rights and Standard of Living in Nigeria

Fuel Subsidy Removal and Macroeconomic Performance in Nigeria

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