FISCAL IMPLICATIONS OF FUEL SUBSIDY REMOVAL IN NIGERIA: A COMPREHENSIVE ANALYSIS

Abstract

Fuel subsidy removal in Nigeria has been a contentious policy issue, with significant fiscal implications for the government's budget. This comprehensive analysis delves into the historical context, economic consequences, and social implications of removing fuel subsidies in Nigeria. The study employs a Likert scale questionnaire to collect data on the dependent and independent variables. The findings suggest that fuel subsidy removal is seen as a necessary step to alleviate budgetary pressures, enhance fiscal sustainability, and redirect funds toward critical sectors like healthcare, education, and infrastructure. However, respondents express concerns about potential negative impacts on the average citizen due to higher fuel prices and call for the implementation of social safety nets to protect vulnerable populations.  In conclusion, this study provides valuable insights into the fiscal implications of fuel subsidy removal in Nigeria and offers a set of recommendations to guide policymakers in achieving fiscal stability, economic diversification, and improved social welfare in the face of subsidy reform.