Resolving the Fuel Subsidy and Welfare Dilemma in the Nigerian Economic Space

Nigeria started subsidizing the prices of its petroleum products in response to the oil shocks of the 1970’s as the state-owned Nigerian National Petroleum Corporation (NNPC) attempted to unify the prices of Petroleum Products with emphasis on what obtains in the international market. Evidently the fuel subsidy regime has produced some cushioning effect but its wrong implementation has also done some damages to the Nigeria nation. Given the divisive nature of the subsidy issue, it continues to evoke need for urgent and stringent solutions in view of its welfare adversities on the people. It is recommended that Nigeria being a developing economy and now adjudged the poverty headquarter of the world should consider partial deregulation rather than full deregulation of petroleum product pricing in the economy. This is essentially in rebalancing the demand and supply side while achieving the social benefit of promoting people's welfare.