The 2023 Fuel Subsidy Removal In Nigeria: Policy Implementation Challenges

Abstract

This study examines the 2023 fuel subsidy removal in Nigeria. Its main objectives are to analyse the political, institutional, and citizen dynamics that shaped the implementation of the subsidy removal and to provide policy recommendations for improving policy effectiveness and public trust in future reforms. The research is anchored on Rent-Seeking Theory, which posits that individuals and groups, particularly political and economic elites, often seek to gain wealth by manipulating public policy or state resources for personal benefit rather than through productive economic activities. The study adopts a quantitative design using secondary data, including macroeconomic indicators from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS), as well as government communications, media reports, and public commentaries. These data were thematically analysed to achieve the research objectives. The findings reveal that political and commercial elites sought to protect longstanding economic privileges; public distrust intensified citizen backlash; and institutional and policy gaps undermined reform outcomes. The study recommends that the Nigerian government enhance institutional credibility through transparent budgeting and responsible reinvestment of subsidy savings. It also suggests designing targeted social safety nets before reform implementation, proactively engaging stakeholders particularly citizens, civil society, and transport associations and adopting a phased reform approach with publicly verifiable milestones.