How did they make it a politically feasible and b help cushion the impact on the poor, middle class and the vested interests. Fuel subsidy which has became a most contentions issue engulfing the nations political land scape, dates back to april 1992 when ibrahim badamosi babangidas government raised the price of a liter of fuel from 15. Pdf examples of successful fuel subsidy removal sumedh. Impacts of removing fuel import subsidies in nigeria on. Sharma 2017, socioeconomic impacts of an lpg subsidy. Following mounting opposition to the planned removal of fuel subsidy, the federal government declared yesterday that the plan is not yet a done deal as. Chapter 8 impact of fuel subsidy removal on government.
Impact of petroleum subsidy removal on government expenditure in nigeria 1okereke, 2samuel f. Fuel subsidy removal and national development in nigeria. Monday 2 nd, january 2012 nigerians took to the streets to protest a fuel subsidy removal by the then federal government led by president goodluck jonathan. The department for education therefore, commissioned this research to understand for england and wales.
Furthermore, the transparency and competition which will follow the deregulation of petroleum industry, will in turn, attracts inv estors, leading to the establishment of private refineries across the country and this will go along way to help nigeria meet up with its local demand and have surplus for export. I urgently appeal to nigerian labor, organized civil society, national assembly, and indeed all nigerians to listen to me. Chapter 5 socioeconomic impacts of an lpg subsidy removal on the household sector in india sangeeta v. While depending on fuelspecific subsidisation rates, subsidy reforms have caused energy price increases of 100% and more in the past fattouh et al. Pdf is there a case for fuel subsidy removal in malaysia. Evidence from the share of conversation suggests that major public resistance is developing to the idea of a subsidy removal.
A disaggregated poverty analysis of fossil fuel subsidy reform iii acknowledgements the author is grateful to bassam fattouh for advice throughout the research project, and detailed comments on an earlier draft of this paper. Socioreligious and value implications drawn from the theistic humanism of professor dukor find. The governments decision to eliminate nigerias costly but highly popular fuel subsidy program has. The study investigated the effects of petroleum subsidy removal on government expenditure in. Lagos, the second most populated city in africa, is an uncharacteristic ghost town today. Identify developing country examples of successful removal of fuel subsidies and identify why they were successful. Evidence obtained from impact simulation will be essential in providing guidelines regarding reallocation scheme. In the early 1950s and at independence, agriculture was the chief foreign exchange earner of this nation. Environmental impacts occur all along the fossil fuel value chain, from the activities of the extractive. Occupy nigeria was a sociopolitical protest movement that began in nigeria on monday, 2 january 2012 in response to the fuel subsidy removal by the federal government of president goodluck jonathan on sunday, 1 january 2012. However, it should be noted that price increases due to subsidy removal can be particularly large. Direct benefit transfer of lpg cooking gas subsidy in india as shown by international experience, efforts to reform energy subsidies have a mixed record of success. This study critically examines the discourse of posts on facebook in the occupy nigeria fuel subsidy removal protests. This is because series of increases in the pump price of fuel over the years have in.
In addition, since the removal of the petroleum subsidy is perhaps sure way for. Pdf on may 4, 2016, moaz hedaia and others published impact of the energy subsidy removal in 2014 on the all income groups and poverty in egypt find, read and cite all the research you need on. Pdf impact of the energy subsidy removal in 2014 on the. The decision by the government to out rightly remove the subsidy on fuel ignited series of arguments and. The real cost of fuel subsidy and tax implications by taiwo oyedele the recent announcement by the federal government of nigeria to remove fuel subsidy with effect from january 2012 has been generating a lot of interesting debates and mixed reactions from different quarters. Environmental assessment of the potential effects and.
This is when the national economic council nec headed by vice president namadi sambo decided that the government should finally remove the subsidy from january 2012. Sharma may 2016 this chapter should be cited as sharma, s. Assessment of the effect of the removal of the spare room. The findings of the study also indicate that creating new institutions to manage the compensation schemes is unnecessary. For some years now, one of the most taunting and complex socioeconomic policy issues in nigeria remains the issue of fuel subsidy removal. Fossil fuel subsidy reforms and their impacts on firms. This emphasises that casespecific analyses of ffs reforms. The remaining three scenarios, which remove half the petroleum product subsidy, have similar impacts on market and supply prices, but are lower in magnitude than the full removal scenario 1 because they all reduce the subsidy by the same amount, targeting a. When the researcher chose this topic fuel subsidy removal and nigerian economyshe was inspired on how nigerians reacted towards the fuel subsidy removal, the strikes, violent demonstrations, high cost of fuel and transportation etc, it was.
Unfortunately, there has been little research undertaken on the effect of the fuel subsidy removal to inform policy consideration. The government, however, must simulate the effect on the economy of subsidy removal. Thus, the fuel subsidy contributes strongly to the deterioration of nigerias government balance which has. Tinubu said the decision to remove subsidy now should not be confused to the failed attempt to removed subsidy by the immediate past administration of goodluck jonathan. Moreover, useful comments by raimund bleischwitz, stijn. The facebook posts are viewed as protest discourse with its ideological imprints of positive we ingroup representations and negative other outgroup constructions. One way forward could be country reporting of fossil fuel subsidies. That same year, in the eecca region alone fossil fuel subsidies for consumers oil, coal, gas and electricity may have totalled about usd 2. The welfare impact of the removal of input subsidies for crop production in lesotho. Barclays bank zambia managing director mizinga melu says the removal of subsidies by government has sparked economic growth in the country. Lies about fuel subsidy removal economic confidential. Nigeria is a country endowed with vast mineral resources prominent among which are the oil and gas reserves. Nwaoga and others published fuel subsidy removal in nigeria. Fuel subsidy removal, which the federal government has effectively canvassed and lobbied for since may 29, 2011 appear to finally take off on december 12, 2011.
D eme, okechukwu innocent emeh, ikechukwu eke jeffrey department of public administration and local government, university of nigeria, nsukka abstract a flip over from the economy is the issue of fuel subsidy removal, which many nigerians felt very touchy about. Hypothetical impacts of energy subsidy removal on firms in. The objective of package 3 is to establish the range of possible environmental impacts of increases in fossil fuel prices due to subsidy removal and tax imposition. Subsidy removal would reduce the carbon price necessary to stabilize greenhouse gas concentration at 550 parts per million by only 212 per cent under low oil prices. Economywide effects of fuel subsidy removals in malaysia. Other mineral deposits like coal, tin and agricultural resources.
Limited emission reductions from fuel subsidy removal. Subsidy removal crisis in nigeria by onyishi, anthony obayi ph. With a cda analytical approach, the study shows that facebook posts are effectively used to. Nigeria is a nation endowed with abundant human and material resources. One way forward could be country reporting of fossil fuel subsidies for the sdg indicator 12. Fuel subsidies tend to be politically popular, especially when the market price of fuel climbs. Fuel subsidy removal and the nigerian economy project topics. Using a cgempsge model in irans energy sector, manzoor, shahmoradi, and haqiqi 2009 noted that the removal of energy subsidies.
When the researcher chose this topic fuel subsidy removal and nigerian economyshe was inspired on how nigerians reacted towards the fuel subsidy removal, the strikes, violent demonstrations, high cost of fuel and transportation etc, it was these problems that made the researcher carryout this work. This will enable them to afford imported food hence, their welfare will be improved. This paper provides a detailed picture of the indias reform of household subsidies for the purchase of lpg cooking gasthe largest. Compensation mechanisms for fuel subsidy removal in nigeria the compensation measures would have to be implemented without political interference or discrimination based on ethnicity, religion, gender or any other bias. The country possesses 28% of africas proven oil reserves, second only to libya. Removing subsidies in most regions would deliver smaller emission reductions than the paris agreement 2015 climate pledges and in some regions global subsidy removal. The removal of fuel subsidy by the federal government as a deliberate policy aimed at conserving and maximizing the oil wealth of the words sixth highest petroleum producerexporter, has. However, they have caused unsustainable financial problems in some countries in which they have been implemented. The question the proponents of fuel subsidy removal are still able to answer is how significant will the fuel subsidy removal be on the socioeconomic activities in the country given the fact that it is the main source of energy for all facet of the economy.
The analysis in this report is based on an exante approach in which we try to measure the reaction of firms against the hypothetical increase of the energy price which is presumably the consequence of the subsidy removal. The welfare impact of the removal of input subsidies for. Impacts on poverty of removing fuel import subsidies in. The effects of subsidy removal on the effective marketing of petrol in nigeria includes abstract and chapter one, complete project material available the effects of subsidy removal on effective marketing of petrol in nigeria a case study of enugu stateabstractalmost every home and business is powered by generator fired by subsidized petrol. A program in which a government or other organization pays for a portion of gasoline, heating oil, or some other fuel. Protests took place across the country, including in the cities of kano, ojota part of metropolitan lagos, abuja, minna, and at the nigerian high commission in london. Raising ambition through fossil fuel subsidy reform. Compensation mechanisms for fuel subsidy removal in nigeria.
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