ADDRESSING THE NAIRA'S FREE-FALL IN THE WAKE OF ENERGY SUBSIDY REMOVAL: A POLICY ROADMAP FOR NIGERIA'S DEMOCRACY
DOI:
https://doi.org/10.29121/ShodhPrabandhan.v2.i1.2025.15Keywords:
Currency, Devaluation, Energy, Economy, Subsidy Removal, NigeriaAbstract
This research review paper explores the complex relationship between the removal of energy subsidies and the depreciation of the Nigerian naira under the current democratic government. Energy subsidies have long been a point of contention in Nigeria, with successive governments grappling with the economic, social, and political implications of their removal. The removal of energy subsidies has been touted as a necessary measure to free up government revenue for development projects, but it has also triggered inflation, social unrest, and a free fall of the naira in the foreign exchange market. This review paper examines the historical context of energy subsidies in Nigeria, their impact on the economy, and the theoretical and conceptual frameworks that explain the interaction between subsidy removal and currency depreciation. It also delves into the current administration’s policies on subsidy removal, the challenges posed by the free fall of the naira, and potential strategies for mitigating these issues. The paper concludes with recommendations for sustainable economic reform, focusing on balancing fiscal responsibility with social equity in a democratic context.
References
Adamu, S., & Hassan, U. (2024). Inflationary Pressures and the Removal of Energy Subsidies: the Nigerian Experience. International Journal of Development Economics.
Adewale, B., & Yusuf, A. (2023). Balancing Subsidy Removal and Economic Growth in Nigeria. Nigerian Economic Review.
Afunugo, K. N., & Chukwukamma, K. E. (2024). Contemporary Mismanagement of Public Finances in Nigeria: Ethical Insights on Tinubu’s Fuel Subsidy Removal Revenues. Multidisciplinary Journal of Law, Education and Humanities, 1(2).
Aigbe, E. N., & Oshoma, B. O. (2024). Subsidy Removal Policy: Analysis of Issues, Challenges and the Way Forward in Nigeria.
Akinola, J. (2023). The Political Economy of Fuel Subsidy Removal in Nigeria: Current Democratic Context. African Policy Journal.
Aruofor, R. O., & Ogbeide, D. R. A. (2024). Simulation Analysis of President Bola Tinubu’s Price Deregulation Policy on the Nigerian Economy: an Outlook to Year.
Bello, R., & Musa, Y. (2023). Corruption in Nigeria's Subsidy Regime: A Systemic Challenge. Transparency and Governance Review.
Chukwunonso, R. D., Nosike, J., Odey, O. J., & Chike, N. K. (2024). The Effect of Fuel Subsidy Removal in Nigeria Economy in Keffi Local Government Area, Nasarawa State. Ideal International Journal, 17(2).
Esekpa, O. I., Ekarika, W. A., & Njama, G. J. (2024). Economic Implications of fuel Subsidy Removal in Nigeria: Challenges and Prospects. Journal of Public Administration, Policy and Governance Research, 2(3), 197-206.
Fyneroad, Z. I. (2024). Fuel Subsidy Removal and its Implications on the Economic Rights of Nigerians. Nnamdi Azikiwe University Journal of International Law and Jurisprudence, 15(2), 224-234.
Idris, A., Kitabu, M. U., Musa, M. M., & Shehu, A. (2024). Effect of Fuel Subsidy Removal on Socio-Economic Development of Chanchaga Local Government Area of Niger State. Kashere Journal of Politics and International Relations, 2(2), 340-354.
Idris, M., & Lawal, A. (2024). The Role of Civil Society in Subsidy Debates in Nigeria. Journal of African Civil Engagement.
Ijigah, E. A., & David, I. O. (2024). Assessment of Subsidies for Construction Businesses in Nigeria: Evolution from an Oil-based Economy to an Infrastructural-based Economy. Journal of Techno-Social, 16(1), 66-80. DOI: https://doi.org/10.30880/jts.2024.16.01.006
Jesuola, G. D. (2024). Impact of the Nigerian Government's Fuel Subsidy Removal: Data Analysis and Suggestions. A Master's Thesis, Texas A&M University-Kingsville.
Joshua, D., Dandaura, J., Umaru, D. A., Sani, A., & Musa, I. C. (2024). Designing Appropriate Compensation Mechanisms for Subsidy Removal in Nigeria: the Role of Fiscal Policy.
Mbanefo, P. A. (2024). Petroleum Subsidy Removal and Socio-Economic Development in Nigeria. African Banking and Finance Review Journal, 11(11), 171-182.
Nigerian National Petroleum Corporation (NNPC) (2023).
Njoku, K. C., Dike, O. J., & Anyanwu, R. C. (2024). Fuel Subsidy Removal as a Correlate of Sustainable Organizational Agility in Owerri-based health facilities. West African Journal on Sustainable Development, 1(2), 105-120.
Oboro, E. D., & Agbamu, M. E. (2024). Fuel Subsidy Removal on the Economic Welfare of Nigerians. International Journal of Applied Research, 10(5), 261-268.
Ogundele, T., & Ibrahim, M. (2024). The Fiscal Impacts of Fuel Subsidies on Nigeria’s Economy." Journal of African Economic Studies.
Ogunleye, A., & Salisu, R. (2023). Impact of Fuel Price Increases on the Cost of Living in Nigeria. Journal of Social and Economic Research.
Ogunmokun, O. (2024). Strategies for Mitigating the Impact of Naira Depreciation on Nigerian Small-and Medium-Sized Enterprises. Doctoral Dissertation, Walden University.
Olawale, S., & Ajiboye, O. (2023). Macroeconomic Management and the Depreciation of the Naira." Nigerian Journal of Finance and Development.
Sambo, U., & Sule, B. (2024). Killing the Economy: the Political Economy of fuel Subsidy Regime and Oil Corruption in Nigeria. In Economic Growth and Development in the Tropics, 159-175. Routledge. https://doi.org/10.4324/9781003349204-10 DOI: https://doi.org/10.4324/9781003349204-10
Umar, S., & Nor, R. M. (2024). The Assessment of Impacts of 2016 Fuel Subsidy Removal on Low Income Earners in Katsina Metropolis, Nigeria. Journal of Sustainable Development Practice, 1(1), 10-20. https://doi.org/10.59953/jsdp.v1i1.2 DOI: https://doi.org/10.59953/jsdp.v1i1.2
Usman, K., & Garba, A. (2023). Fuel Subsidy Removal and Market Efficiency in Nigeria. West African Economic Forum.
