FUEL SUBSIDY IN NIGERIA: FROM TEMPORARY RELIEF TO A NATIONAL BURDEN
Has Its Removal Made Nigeria Better? Nigeria's fuel subsidy story is one of the most complicated chapters in the country's economic history. What began as a policy intended to protect Nigerians from the shock of high petroleum prices gradually became a huge fiscal burden, a source of controversy, an incentive for smuggling and arbitrage, and—according to numerous audits and investigations—a system vulnerable to abuse. Yet the removal of subsidy under President Bola Ahmed Tinubu in May 2023 created another painful reality: petrol prices rose sharply, transportation became expensive, food prices followed, businesses faced higher operating costs, and millions of Nigerians found their purchasing power severely weakened. The central question, therefore, is not simply "Was subsidy good or bad?" The more important question is: What did Nigeria do with the enormous resources committed to subsidy, and what has the country done with the savings since subsidy wa...