Resolving the Fuel Subsidy and Welfare Dilemma in the Nigerian Economic Space

Authors

  • Ebere Ume Kalu Department of Banking and Finance University of Nigeria, Nigeria Author
  • Uzoma Friday Christopher Department of Banking and Finance, Enugu State University of Science and Technology, Agbani, Nigeria Author
  • Linus Justin Ogbonna Department of Business Administration, Southwestern University, Nigeria Author
  • Lawal Faith Chidinma Department of Business Education, Kogi State College of Education, Ankpa, Nigeria Author
  • Sunday O Okafor Teesside University International Business School, Middlesbrough, England Author

DOI:

https://doi.org/10.47363/JMSCM/2024(3)165

Keywords:

Fuel Subsidy, Welfare, Governance, Nigeria, Petroleum Product Pricing

Abstract

Nigeria started subsidizing the prices of its petroleum products in response to the oil shocks of the 1970’s as the state-owned Nigerian National Petroleum Corporation (NNPC) attempted to unify the prices of Petroleum Products with emphasis on what obtains in the international market. Evidently the fuel subsidy regime has produced some cushioning effect but its wrong implementation has also done some damages to the Nigeria nation. Given the divisive nature of the subsidy issue, it continues to evoke need for urgent and stringent solutions in view of its welfare adversities on the people. It is recommended that Nigeria being a developing economy and now adjudged the poverty headquarter of the world should consider partial deregulation rather than full  deregulation of petroleum product pricing in the economy. This is essentially in rebalancing the demand and supply side while achieving the social benefit of promoting people's welfare.

Author Biographies

  • Ebere Ume Kalu, Department of Banking and Finance University of Nigeria, Nigeria

    Department of Banking and Finance University of Nigeria, Nigeria

  • Uzoma Friday Christopher , Department of Banking and Finance, Enugu State University of Science and Technology, Agbani, Nigeria

    Department of Banking and Finance, Enugu State University of Science and Technology, Agbani, Nigeria

  • Linus Justin Ogbonna, Department of Business Administration, Southwestern University, Nigeria

    Department of Business Administration, Southwestern University, Nigeria 

  • Lawal Faith Chidinma, Department of Business Education, Kogi State College of Education, Ankpa, Nigeria

    Department of Business Education, Kogi State College of Education, Ankpa, Nigeria

  • Sunday O Okafor, Teesside University International Business School, Middlesbrough, England

    Teesside University International Business School, Middlesbrough, England

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Published

2024-12-18

Issue

Vol. 3 No. 6 (2024): Volume 3 Issue 6

Section

Articles