Fuel Subsidy Removal: Prospects and Challenges on the Nigerian Economy (Evidence from Akure, Ondo State Metropolis)

Abstract

For some years now, one of the most taunting and complex sociology-economic policy issues in Nigeria remains the issue of Fuel subsidy removal. The decision by the government to out rightly remove the subsidy on fuel ignited series of arguments and protests nation-wide. Despite the global reduction in the price of oil, Nigeria experiences high price of oil. This study examines the prospects and the challenges of fuel subsidy removal on the Nigerian economy. The methodology employed is the Anova statistics which was applied to test the hypotheses stated in the study at 0.05 significant level. The results obtained showed that fuel subsidy removal affects the cost of living, reduces the consumption pattern, savings and investment level of the people and that it is a plague to the Nigerian economy and her people. As a result, it is recommended in this study that the widespread of corruption embedded in the system should be eradicated and be dealt with it, appropriately through transparent fiscal operation. To diversify the economy by embracing agricultural production of our food stables instead of importing them likewise, Nigeria to build more refineries and the major refineries should work in full capacity. These programme are growth prospects that will brighten the Nigerian economy and her people in the nearest future.