IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: 10.56201/ijebm.v10.no7.2024.pg185.197

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Fuel Subsidy and its Economic Implication in Nigeria Kingdom Miebimo and Assoc. Prof Baghebo, Michael

Fuel Subsidy and its Economic Implication in Nigeria Kingdom Miebimo and Assoc. Prof Baghebo, Michael

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Abstract

The research investigated the implications of fuel subsidies on Nigeria's economy, focusing on the ongoing debate about their removal from both political and economic perspectives. The study utilized primary data gathered through interviews, which allowed for a comprehensive analysis based on recorded information. A qualitative research design and content analysis method were employed. The findings revealed that citizens, particularly the poor, are experiencing hardships due to increased transportation costs and higher prices for food and other essential goods. Conversely, the government maintains that removing the fuel subsidy benefits the economy overall by redirecting funds to enhance infrastructure in sectors such as education, transportation, and health. The government argues that this move will also alleviate price distortions, reduce corruption, and eliminate inefficiencies. The study proposes several

keywords:

Fuel Subsidy, Nigerian Economy, Subsidy Removal, Challenges, Way forward

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