Investigating the Effect of Petroleum Subsidy Removal on Standard of Living Amidst Rising Poverty in Nigeria

Abstract

Nigeria, as an oil-dependent economy has long relied on petroleum subsidy to ensure affordable fuel prices for its citizens. The country provided subsidy on petroleum products to mitigate the effects of rising fuel prices on the population. However, in recent years, the country has faced numerous challenges including the rising rate of inflation, unemployment and increase in poverty rates. Based on these challenges, the decision to remove petroleum subsidy has had a significant impact on the general standard of living implying that, subsidy removal had a direct impact on the people’s welfare and the country’s economy. Therefore, this research paper investigates the effect of petroleum subsidy removal by the recently inaugurated government of Nigeria on standard of living of the population at the peak of rising level of poverty in the country. To achieve this objective, the background of the problem was discussed, review of related literature was undertaken and the possible recommendations were suggested towards mitigating the severe effect of petroleum subsidy removal on the general living standard of the population