Oil Subsidy removal policy and politics: How fair have Nigerians fared of subsidy policy?

Abstract

Oil subsidy payment and its removal have remained a matter of controversy in Nigeria socio- economic and political development discourse. While some see subsidies as social welfare benefits to the vulnerable segments of populace; other refer to it as a funnel through which public funds had been swindled into private pockets. Adopting a qualitative data analysis, anchored within the contextual analysis of political economy and neo-liberalism theories, examines impacts of oil subsidy removal; its effect on the welfare of Nigerians, the rising inflation and benefit of subsidy removal to national economic growth, sustainability and development. The paper contends that while there is a long time propose economic benefits, removal of oil subsidy violates the fiduciary responsibility of the State as expressed in the preamble to the 1999 constitution. The findings further revealed that insensitivity to the social welfare of Nigerians, the attempt by the oil cabal to monopolize and privatize Nigerian oil sector exposed Nigerians to economic hardship with the fluctuations and hikes in petrol prices, staple foods, transportation and other social services. The study concludes that Nigerian government needs to pre-dictates its legitimacy on policy making and trust on peoples; their ‘support for better socio-economic policies compliance and reforms. It recommends the need for better institutions and institutional rules which should be strengthened on transparent, accountable and make impossible autonomous of cabals and individuals who might want to manipulate the economic benefits of Nigeria oil resource for groups or personal interests.