Volume : 2, Issue : 2, JAN 2018
FUEL SUBSIDY: A SOUND POLICY TO ENDING ECONOMIC RECESSION IN NIGERIA
Adeniran, Adetayo Olaniyi, Obembe, Oluwabukunmi Eunice
This paper emphatically identified fuel subsidy as a sound policy that will resuscitate Nigeria from the present recession. Nigeria’s economy was officially declared to be in recession, following the figures released by the National Bureau of Statistics (NBS) officially confirmed, although, various government officials notably, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele and the Minister of Finance, Kemi Adeosun, said the economy was in a “technical” recession, their official confirmation came with the new figures released in August, 2016, meanwhile, fuel subsidy was totally removed by the present administration in May, 2016. This recession became noticed after almost three months when fuel subsidy was totally removed by the present administration. Various attempts by previous government administration to remove fuel subsidy have huge negative effects on the nations’ economy. For a developing country like Nigeria, fuel subsidy should be considered as major tool to enhance citizens’ welfare most especially the middle and low income earners, meanwhile, the disbursement of fuel subsidy must be properly monitored to guide against corruption as shown in the past administrations. Strict policies can be set aside as punishment (such as death sentence, life imprisonment and other costly punishments) for any corrupt office holder.
Fuel subsidy, economic recession, transportation and sound policy.
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