{"id":22321,"date":"2025-01-12T09:43:40","date_gmt":"2025-01-12T09:43:40","guid":{"rendered":"https:\/\/journals.amssr.org\/grjbm\/?p=22321"},"modified":"2025-01-12T09:43:46","modified_gmt":"2025-01-12T09:43:46","slug":"fuel-subsidy-and-the-nigerian-sustainable-development","status":"publish","type":"post","link":"https:\/\/journals.amssr.org\/grjbm\/2025\/01\/12\/fuel-subsidy-and-the-nigerian-sustainable-development\/","title":{"rendered":"Fuel Subsidy and the Nigerian Sustainable Development"},"content":{"rendered":"\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/journals.amssr.org\/grjbm\/wp-content\/uploads\/sites\/3\/2025\/01\/Fuel-Subsidy-and-the-Nigerian-Sustainable-DevelopmentFuel-Subsidy-and-Sustainable-development-in-Nigeria.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Fuel Subsidy and the Nigerian Sustainable DevelopmentFuel Subsidy and Sustainable development in Nigeria.\"><\/object><a id=\"wp-block-file--media-32af55b0-8cbc-453c-9b1a-b585ec58dcce\" href=\"https:\/\/journals.amssr.org\/grjbm\/wp-content\/uploads\/sites\/3\/2025\/01\/Fuel-Subsidy-and-the-Nigerian-Sustainable-DevelopmentFuel-Subsidy-and-Sustainable-development-in-Nigeria.pdf\">Fuel Subsidy and the Nigerian Sustainable DevelopmentFuel Subsidy and Sustainable development in Nigeria<\/a><a href=\"https:\/\/journals.amssr.org\/grjbm\/wp-content\/uploads\/sites\/3\/2025\/01\/Fuel-Subsidy-and-the-Nigerian-Sustainable-DevelopmentFuel-Subsidy-and-Sustainable-development-in-Nigeria.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-32af55b0-8cbc-453c-9b1a-b585ec58dcce\">Download<\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Abstract<\/strong><\/h2>\n\n\n\n<p><strong>Research Objective: <\/strong>This study explores the relationship between fuel subsidies and sustainable economic development in Nigeria, focusing on the effects of fuel prices and fuel consumption.&nbsp;<\/p>\n\n\n\n<p><strong>Methodology: <\/strong>Drawing on secondary data from the Central Bank of Nigeria (CBN) spanning from 1981 to 2023, an Autoregressive Distributed Lag (ARDL) model was used to analyze the impact of fuel prices and fuel consumption on Nigeria\u2019s real GDP (RGDP).&nbsp;<\/p>\n\n\n\n<p><strong>Findings: <\/strong>The results reveal that fuel price adjustments have a positive and statistically significant long-run relationship with economic growth, suggesting that reducing fuel subsidies or increasing fuel prices could enhance economic development by improving resource allocation and fiscal space. However, in the short run, fuel prices do not significantly impact economic growth. Conversely, fuel consumption shows a negative yet statistically significant effect, indicating inefficiencies in fuel use.&nbsp;<\/p>\n\n\n\n<p><strong>Recommendations: <\/strong>The study highlights the need for comprehensive energy reforms, suggesting that fuel subsidies must be managed strategically, with an emphasis on improving fuel efficiency and diversifying energy sources. Policymakers should consider gradual subsidy removal, paired with social safety nets to mitigate the adverse effects on low-income households, ensuring that fuel consumption supports productive sectors. The findings underscore the importance of long-term planning and careful management of fuel subsidy policies to support Nigeria\u2019s sustainable economic development.<\/p>\n\n\n\n<p><em><strong>Key words: <\/strong>Fuel subsidies, sustainable development, Nigeria, fuel prices, fuel consumption.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>References<\/strong><\/h2>\n\n\n\n<p>Abimanyu, A. &amp; Imansyah, M. H. (2023). The impact of fuel subsidy to the income distribution: The case of Indonesia. Indonesian Treasury Review: <em>Journal Perbendaharaan, Keuangan Negara dan Kebijakan Publik, 8(3), 189-203.<\/em><\/p>\n\n\n\n<p>Adebiyi, O. (2011). Fuel subsidy: The true Story. Retrieved from <a href=\"about:blank\">https:\/\/234<\/a> Next.Com\/Csp\/Cms\/Sites\/Next\/Home\/5764 67-1822\/Fuel Subsidy the true Story.Csp.<\/p>\n\n\n\n<p>Adewunmi M. and Hounsou R.&nbsp; (2014) The Impact of Fuel Subsidy Removal on Socio-Economic Development in Nigeria: An Econometric Investigation.<em> International Journal of Economics, Commerce and Management United Kingdom 2(12)<\/em>, <em>1-9<\/em><\/p>\n\n\n\n<p>Apeloko, D. O., &amp; Olajide, O. J. (2012). Chapter eight newspaper coverage of oil subsidy removal remonstration: A thoughtful analysis of the 2012 experience in Nigeria. Environmental Conflicts and Peacebuilding in Africa, 125.<\/p>\n\n\n\n<p>Cerin, P. (2006). Bringing economic opportunity into line with environmental influence: A Discussion on the Coase theorem and the Porter and van der Linde hypothesis. Ecological Economics, 209-225.<\/p>\n\n\n\n<p>Coady, D., Parry, I., Sears, L., &amp; Shang, B. (2015). How large are global energy subsidies? <em>IMF Working Papers<\/em>, <em>15<\/em>(105), 1-39. https:\/\/doi.org\/10.5089\/9781513532196.001<\/p>\n\n\n\n<p>Dernbach, J. C. (1998). Sustainable development as a framework for national governance. Case Western Reserve Law Review, 1-103.<\/p>\n\n\n\n<p>Dernbach, J. C. (2003). Achieving sustainable development: The Centrality and multiple facets of integrated decision-making. <em>Indiana Journal of Global Legal Studies<\/em>, 5 (7) 247-285.<\/p>\n\n\n\n<p>Foo, T., Ling, F., &amp; Lee, S. (2020). The impact of fuel subsidies on energy consumption and environmental quality in emerging markets. <em>Journal of Cleaner Production<\/em>, <em>252<\/em>, 119-129. https:\/\/doi.org\/10.1016\/j.jclepro.2019.119-129<\/p>\n\n\n\n<p>Idrees, M. G., Rabi, T. A. &amp; Nura, M. B. (2024) Implications of Fuel Subsidy Removal on Nigeria&#8217;s Sustainable Development.<em> Nigerian Journal of Management Sciences<\/em> <em>25(1), 279-288<\/em><\/p>\n\n\n\n<p>Kojima, M. (2017). <em>Fossil fuel subsidy and pricing policies: Recent developing country experience<\/em>. World Bank Group.<\/p>\n\n\n\n<p>Onyeizugbe, C. U. and Onwuka, E. M. (2012) Fuel Subsidy Removal as an Imperative for Enhancing Business Development in Nigeria.<em> International Journal of Business &amp; Management. Research 2 (9), 3-15<\/em><\/p>\n\n\n\n<p>Ovaga, O., &amp; Okechukwu, A. (2022). Fuel subsidy removal and economic development: Lessons from Nigeria. <em>Journal of Policy Analysis<\/em>, <em>10<\/em>(2), 135-147.<\/p>\n\n\n\n<p>Ozili, P. K (2023) Implications of fuel subsidy removal on the Nigerian economy. MPRA Munich Personal RePEc Archive Online at <a href=\"https:\/\/mpra.ub.uni-muenchen.de\/118798\/\" target=\"_blank\" rel=\"noopener\">https:\/\/mpra.ub.uni-muenchen.de\/118798\/<\/a><\/p>\n\n\n\n<p>Ozili, P. K., &amp; Obiora, E. (2023). Fuel subsidy reforms in Nigeria: Challenges and opportunities. <em>Nigerian Journal of Economic Reforms<\/em>, <em>19<\/em>(1), 101-115.<\/p>\n\n\n\n<p>Siddig, K., Aguiar, A., Grethe, H., Minor, P., &amp; Walmsley, T. (2014). Impacts of removing fuel import subsidies in Nigeria on poverty. <em>Energy Policy<\/em>, <em>69<\/em>, 165-178. <a href=\"https:\/\/doi.org\/10.1016\/j.enpol.2014.02.013\" target=\"_blank\" rel=\"noopener\">https:\/\/doi.org\/10.1016\/j.enpol.2014.02.013<\/a><\/p>\n\n\n\n<p>Stoddart, H. (2011). A pocket guide to sustainable development governance. Stakeholder Forum.<\/p>\n\n\n\n<p>Umar, H. M., &amp; Umar, M. S. (2013). An assessment of the direct welfare impact of fuel subsidy reform in Nigeria. <em>American Journal of Economics<\/em>, 3(1), 23\u201326.<\/p>\n\n\n\n<p>Umeji, J., &amp; Eleanya, E. (2021). Subsidies and the Nigerian economy: A review of impacts and reforms. <em>African Development Review<\/em>, <em>33<\/em>(4), 401-412.<\/p>\n\n\n\n<p>UNEP (2002). Energy Subsidies: Lessons Learned in Assessing Their Impact and Designing Policy Reforms. Unep.Geneva.WWW.Unep.Ch\/ETB\/Publications\/Energy Subsidies\/Energies Ubreports PdfVan Valkengoed, A. M., &amp; Van der Werff, E. (2022). Are subsidies for climate action effective? Two case studies in the Netherlands. <em>Environmental Science &amp; Policy<\/em>, 127, 137-145.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Abstract Research Objective: This study explores the relationship between fuel subsidies and sustainable economic development in Nigeria, focusing on the effects of fuel prices and fuel consumption.&nbsp; Methodology: Drawing on secondary data from the Central Bank of Nigeria (CBN) spanning from 1981 to 2023, an Autoregressive Distributed Lag (ARDL) model was used to analyze the impact of fuel prices and fuel consumption on Nigeria\u2019s real GDP (RGDP).&nbsp; Findings: The results reveal that fuel price adjustments have a positive and statistically [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21662,"comment_status":"open","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,195,179],"tags":[216],"class_list":["post-22321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-grjbm","category-vol-4-issue-2","category-volume-4","tag-ighoroje-ese-james-phd"],"_links":{"self":[{"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/posts\/22321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/comments?post=22321"}],"version-history":[{"count":1,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/posts\/22321\/revisions"}],"predecessor-version":[{"id":22323,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/posts\/22321\/revisions\/22323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/media\/21662"}],"wp:attachment":[{"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/media?parent=22321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/categories?post=22321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/journals.amssr.org\/grjbm\/wp-json\/wp\/v2\/tags?post=22321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}