Fuel Subsidy Removal and Socio-Economic Development in Nigeria: Challenges and Prospects

The discovery, exploration and exploitation of oil in Nigeria have been a blessing in disguise. Rather than foster development, corruption and mismanagement of public funds have been a feature of the polity. This has deviated the state from the trajectory of development and denied the people the blessings of oil. The study examined how the Nigerian state utilized funds realized from the removal of fuel subsidies and injected the same into other sectors towards achieving socio-economic development. The study employed the mixed research methodology in analyzing data and employed the Big Push Theory as its analytical framework. The theory asserts that to achieve socio-economic development; there is a need for coordination among different components of the economy. The study concludes that although fuel subsidy removal could generate significant fiscal savings for the government, implementing it requires tactfulness and a careful study of the economy as its forceful implementation could have severe consequences. Also, if funds realized are efficiently utilized, it will foster socio-economic development and lessen the economic burdens on the citizenry. The study recommended among others for the initiative to be beneficial, funds realized must be evenly channelled into other sectors like education, security, agriculture and transportation; as this will rejuvenate the economy and foster sustained socio-economic development.