Author(s) :

TUOYO, Lorreta Enaife Ologho.

Volume/Issue :

Abstract :

ABSTRACTS This study critically examines Tinubu's economic reforms, with a particular focus on the removal of fuel subsidies and its national development implications in Nigeria. The decision to eliminate fuel subsidies has sparked intense debate due to its far-reaching consequences on various socio-economic groups, particularly the middle and lower classes. The study outlines the short-term economic challenges such as rising fuel prices, increased inflation, and reduced purchasing power, which disproportionately impact vulnerable populations. Despite these challenges, the research identifies significant long-term benefits, including fiscal savings, the potential for reinvestment in critical sectors such as education, healthcare, and infrastructure, as well as promoting energy efficiency and domestic refining capacity. The research is guided by four objectives: assessing the fiscal impact of subsidy removal, examining the social and economic effects on citizens, exploring long-term developmental opportunities, and evaluating government mitigation policies. Using a theoretical framework based on the Rational Choice Theory, the study explains how economic agents—government and citizens—make decisions that lead to outcomes with widespread implications. The methodology relies on secondary data sources from government reports, economic publications, and international organizations. Findings reveal that while fuel subsidy removal presents significant fiscal advantages, including redirecting resources toward development projects, it has caused short-term hardships for Nigerians. The study highlights the importance of government policies, such as targeted social protection programs and support for small and medium-sized enterprises (SMEs), in cushioning the negative effects. The research concludes that subsidy removal, if well managed, holds transformative potential for Nigeria's economic development. Key recommendations include strengthening social safety nets, accelerating domestic refinery development, investing in public transportation, and ensuring transparent management of fiscal savings. This study provides a comprehensive understanding of the complexities surrounding fuel subsidy removal and its broader economic implications. Keywords: Economic Reform, the National Development Implications, Fuel Subsidy Removal

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