The socio-economic and environmental implications of petroleum subsidies removal on Nigerians
Keywords:
Neoliberal Resource Management, Socio-Environmental, Petroleum Subsidies Removal, Nigerian HouseholdsAbstract
The removal of petroleum subsidies in Nigeria, a neoliberal approach to resources management, remains one of the most controversial economic reforms of the 21st century in the country. While aimed at fostering fiscal discipline and reducing distortions in the energy sector, the policy has ignited a ripple of socio-economic disruptions and unintended environmental consequences. This article explores the intertwined socio-environmental implications of fuel subsidy removal, with a particular focus on Nigerian households. Drawing on empirical studies, policy reports, and international frameworks, the paper critically analyzes how this shift impacts household welfare, environmental sustainability, and social equity. Policy recommendations emphasize the need for targeted mitigation strategies, sustainable energy investments, and a just transition framework. The environmental dimension, often overlooked, demands attention, especially as unsustainable coping mechanisms could reverse gains in forest conservation and public health. This article, thus underscores the need for a balanced policy approach that aligns fiscal responsibility with social justice and environmental sustainability. Without inclusive and responsive policy frameworks, subsidy reforms risk exacerbating inequality, fueling public discontent, and undermining the long-term objectives of energy transition and economic resilience in Nigeria.Downloads
References
1. Adenikinju A. (2019). Energy Pricing and Subsidy Reform in Nigeria. Energy Policy, 132, 43–51
2. Adeniran A., Onyekwena C., & Ekeruche A.M. (2022). Fuel Subsidy Removal in Nigeria: Welfare Implications and Pathways. Centre for the Study of the Economies of Africa (CSEA)
3. Afolabi A. & Okonkwo E. (2023). Household Responses to Energy Shocks in Post-Subsidy Nigeria. Nigerian Journal of Development Studies, 34(1), 14–37
4. Agarwal B. (2001). Participatory Exclusions, Community Forestry, and Gender: An Analysis for South Asia and a Conceptual Framework. World Development, 29(10), 1623–1648
5. Akinbode S.O. (2020). Petroleum Subsidy Reform and the Political Economy of Trust in Nigeria. Nigerian Journal of Public Policy, 45(1), 21–39
6. Al Jazeera. (2023). Nigerian Workers Strike Over Fuel Subsidy Removal. Retrieved from aljazeera.com
7. Beck U. (1992). Risk Society: Towards a New Modernity. SAGE Publications
8. BudgIT. (2021). Nigeria’s Fuel Subsidy Regime: Dilemma of the World’s Most Populous Black Nation. Lagos, Nigeria
9. BudgIT. (2022). Nigeria’s Fuel Subsidy in Perspective. https://yourbudgit.com (Retrieved on 16-5-2025)
10. BudgIT. (2022). Nigeria's 2022 Budget: Fuel Subsidy Insights. https://yourbudgit.com (Retrieved on 16-5-2025)
11. Bullard R.D. (1993). Confronting Environmental Racism: Voices from the Grassroots. South End Press
12. Chete L.N., Adeoti J.O., Adeyinka F.M., & Ogundele O. (2016). Industrial Policy and Industrialisation in Nigeria. Brookings Institution
13. Chete L.N., Adeoti J.O., Adeyinka F.M., & Ogundele O. (2016). Industrial Policy in Nigeria: Opportunities and Challenges. Brookings Institution
14. CSEA. (2023). Macroeconomic Impact of Fuel Subsidy Removal on SMEs. Centre for the Study of the Economies of Africa
15. Dunlap R.E. & Brulle R.J. (2015). Climate Change and Society: Sociological Perspectives. Oxford University Press
16. Energy Commission of Nigeria. (2021). Renewable Energy Master Plan 2021 Update
17. Ibitoye F.I. (2013). The Challenge of Sustainable Energy in Nigeria. Energy, 50, 458–465
18. IEA. (2022). Africa Energy Outlook 2022. International Energy Agency
19. Ike D.N., Eboh E.C., & Ogujiuba K. (2020). Fuel Subsidy Removal and Energy Access in Nigeria. Energy & Environment, 31(2), 254–271
20. Ike D.N., Eboh E.C., & Ogujiuba K. (2020). Fuel Subsidy Removal and Energy Poverty in Nigeria: Environmental and Social Implications. Energy Policy, 146, 111799
21. ILO. (2015). Guidelines for a Just Transition Towards Environmentally Sustainable Economies and Societies for All. International Labour Organization
22. IMF. (2021). Nigeria: Selected Issues. IMF Country Report No. 21/173
23. IMF. (2023). Nigeria: Article IV Consultation Report. International Monetary Fund
24. IMF. (2023). Nigeria: Post-Subsidy Reform Analysis. IMF Country Review
25. IMF. (2023). Post-Subsidy Fiscal Strategy and Poverty Impact Assessment in Nigeria. IMF Country Report
26. International Energy Agency (IEA). (2022). Fossil Fuel Subsidy Reform: A Crucial Element of Clean Energy Transition
27. Martinez-Alier J. (2002). The Environmentalism of the Poor: A Study of Ecological Conflicts and Valuation. Edward Elgar
28. Mol A.P.J. (2006). Environmental Governance in the Information Age: The Emergence of Informational Governance. Environment and Planning C, 24(4), 497–514
29. National Bureau of Statistics (NBS). (2023). Inflation Report – August 2023. Abuja, Nigeria
30. NBS. (2023). Fuel Price Watch and Inflation Report. National Bureau of Statistics
31. NBS. (2024). Consumer Price Index Report. Retrieved from https://www.nigerianstat.gov.ng
32. NEITI. (2020). Oil and Gas Industry Report. Nigeria Extractive Industries Transparency Initiative
33. Nigerian National Petroleum Company (NNPC). (2022). Monthly Financial and Operations Report
34. Obi C. (2021). Oil Subsidy Politics and the Challenge of Reform in Nigeria. African Affairs, 120(480), 441–462
35. Ogundipe A.A., Folarin E., & Olayemi T. (2022). Gender and Energy Transition in Post-Subsidy Nigeria. African Review of Economics and Finance, 14(2), 89–111
36. Ogundipe A.A., Folarin E., & Olayemi T. (2022). Gender Dynamics of Energy Poverty in Nigeria. African Review of Economics and Finance, 14(2), 167–183
37. Okeke J.C. (2021). Fuel Subsidies and the Cultural Politics of Energy in Nigeria. African Affairs, 120(479), 234–257
38. Okonjo-Iweala N. (2012). Reforming the Unreformable: Lessons from Nigeria. MIT Press
39. Okonta I. & Douglas O. (2003). Where Vultures Feast: Shell, Human Rights, and Oil in the Niger Delta. Verso Books
40. Punch Newspaper. (2023). Fuel Prices Surge After Subsidy Removal. Lagos, Nigeria
41. Rocheleau D., Thomas-Slayter B., & Wangari E. (1996). Feminist Political Ecology: Global Issues and Local Experience. Routledge
42. Scoones I., Leach M., & Newell P. (2015). The Politics of Green Transformations. Routledge
43. SEforALL. (2022). Clean Energy for All Nigerians: The Decentralized Energy Strategy. Sustainable Energy for All
44. UN Women Nigeria. (2023). The Gendered Impact of Energy Access in Nigeria
45. UNEP. (2021). Fossil Fuel Subsidies: An Obstacle to Sustainable Development. United Nations Environment Programme
46. UNEP. (2021). Fossil Fuel Subsidy Reform: The Challenges of a Just Transition. United Nations Environment Programme
47. UNEP. (2022). Africa Air Quality Report
48. UNICEF. (2023). Child Well-being in the Wake of Subsidy Removal in Nigeria. Retrieved from https://www.unicef.org/nigeria
49. UNICEF. (2023). Fuel Subsidy Removal and Its Impact on Child and Maternal Health in Nigeria. https://www.unicef.org/nigeria (Retrieved on 16-5-2025)
50. Watts M. (2010). Oil, Development, and the Politics of the Bottom Billion. Macalester International, 24(1), 65–98
51. WHO. (2022). Household Air Pollution and Health. World Health Organization
52. WHO. (2022). Indoor Air Pollution and Health. World Health Organization
53. World Bank. (2021). Nigeria Development Update: Resilience Through Reforms. Washington D.C.
54. World Bank. (2022). Nigeria Development Update: Inflation and Subsidy Fiscal Risks. World Bank Group
55. World Bank. (2022). Reforming Subsidies for a Better Future
56. World Bank. (2023). Protecting the Poor During Nigeria’s Fuel Subsidy Reform. Retrieved from https://www.worldbank.org (Retrieved on 16-5-2025)
57. World Bank. (2023). Protecting the Poor in a Post-Subsidy Nigeria. https://www.worldbank.org (Retrieved on 16-5-2025)
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
