IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/1026.html

Fuel Subsidy Corruption and the Illusions of Economic Reconstruction in Nigeria

Author

Listed:
  • Emmanuel Terkimbi Akov

Abstract

The fuel subsidy patchwork in Nigeria has been fraught with elite manipulations and intrigues. This paper analyses the debilitating state of Nigeria’s energy-dependent economy against the backdrop of unprecedented oil-generated opulence. The article relies on secondary data. This method enabled the author draw heavily on recorded data thus making for an in-depth analysis. It was found that rampant corruption in the nation’s sprawling oil sector is hugely responsible for the intractable economic development slow-motion that has worsened the plight of ordinary Nigerians. While the country’s refineries remain moribund, fuel subsidy has, instead created leeway for the criminally-minded elite to squander the commonwealth. Government has demonstrated little or no political will to stem the decay in the oil sector, as underlined by her reluctance to prosecute oil thieves, some of whom are directly or indirectly connected to the apparatus of the state. Unlike in Ghana where government engaged the people and introduced measures to cushion the harsh effects of fuel subsidy phase-out on the poor, in Nigeria, government has often increased the cost of petrol before ever addressing its impacts on vulnerable groups. The paper therefore recommends the revamping of the country’s refineries, the strengthening of the fight against corruption and the establishment of a regulatory framework to protect citizens as necessary measures to help improve the poor state of Nigeria’s economy and society.

Suggested Citation

  • Emmanuel Terkimbi Akov, 2015. "Fuel Subsidy Corruption and the Illusions of Economic Reconstruction in Nigeria," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, March.
    • Handle: RePEc:bjz:ajisjr:1026
    DOI: 10.5901/mjss.2015.v4n1p395
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/5993
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/5993/5764
    Download Restriction: no
    File URL: https://libkey.io/10.5901/mjss.2015.v4n1p395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Walker, Jack L., 1966. "A Critique of the Elitist Theory of Democracy," American Political Science Review, Cambridge University Press, vol. 60(2), pages 285-295, June.
    2. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    3. Sylvester Odion Akhaine, 2010. "Nigeria: politics and the end of oil," Review of African Political Economy, Taylor & Francis Journals, vol. 37(123), pages 89-91, March.
    4. Nwachukwu, Maxwell Umunna & Chike, Harold, 2011. "Fuel subsidy in Nigeria: Fact or fallacy," Energy, Elsevier, vol. 36(5), pages 2796-2801.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joonseok Yang & Tom Moerenhout, 2024. "Information campaigns and public perceptions of structural reforms: Evidence from a survey experiment on gasoline subsidy reform in Nigeria," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 43(2), pages 509-529, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dale W. Henderson & Stephen W. Salant, 1976. "Market anticipations, government policy, and the price of gold," International Finance Discussion Papers 81, Board of Governors of the Federal Reserve System (U.S.).
    2. John Baffes & Cristina Savescu, 2014. "Monetary conditions and metal prices," Applied Economics Letters, Taylor & Francis Journals, vol. 21(7), pages 447-452, May.
    3. Siebert, Horst, 1982. "Das intertemporale Angebot eines ressourcenabbauenden Unternehmens," Open Access Publications from Kiel Institute for the World Economy 3563, Kiel Institute for the World Economy.
    4. Haugom, Erik & Mydland, Ørjan & Pichler, Alois, 2016. "Long term oil prices," Energy Economics, Elsevier, vol. 58(C), pages 84-94.
    5. Devarajan, Shantayanan & Fisher, Anthony C, 1981. "Hotelling's "Economics of Exhaustible Resources": Fifty Years Later," Journal of Economic Literature, American Economic Association, vol. 19(1), pages 65-73, March.
    6. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    7. Seyhan, Demet & Weikard, Hans-Peter & van Ierland, Ekko, 2012. "An economic model of long-term phosphorus extraction and recycling," Resources, Conservation & Recycling, Elsevier, vol. 61(C), pages 103-108.
    8. Leach, Andrew & Mason, Charles F. & Veld, Klaas van ‘t, 2011. "Co-optimization of enhanced oil recovery and carbon sequestration," Resource and Energy Economics, Elsevier, vol. 33(4), pages 893-912.
    9. Mason, Charles F., 2014. "Uranium and nuclear power: The role of exploration information in framing public policy," Resource and Energy Economics, Elsevier, vol. 36(1), pages 49-63.
    10. Naoyuki Yoshino & Victoriia Alekhina, 2016. "Impact of oil price fluctuations on an energy-exporting economy: Evidence from Russia," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(4), pages 156-166.
    11. Barhen, J. & Alsmiller, R.G. & Weisbin, C.R. & Morra, F. & Kuuskraa, V.A. & Nesbitt, D.M. & Philips, R.L. & Morra, F., 1983. "Design of a liquid fuels supply model for U.S. policy analysis," Energy, Elsevier, vol. 8(3), pages 169-197.
    12. Ansgar Belke & Daniel Gros, 2014. "A simple model of an oil based global savings glut—the “China factor”and the OPEC cartel," International Economics and Economic Policy, Springer, vol. 11(3), pages 413-430, September.
    13. Paltseva, Elena & Toews , Gerhard & Troya-Martinez, Marta, 2022. "I’ll pay you later: Sustaining Relationships under the Threat of Expropriation," SITE Working Paper Series 59, Stockholm School of Economics, Stockholm Institute of Transition Economics.
    14. Mardones, Cristian & del Rio, Ricardo, 2019. "Correction of Chilean GDP for natural capital depreciation and environmental degradation caused by copper mining," Resources Policy, Elsevier, vol. 60(C), pages 143-152.
    15. Michael Peneder & Spyros Arvanitis & Christian Rammer & Tobias Stucki & Martin Wörter, 2022. "Policy instruments and self-reported impacts of the adoption of energy saving technologies in the DACH region," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 369-404, May.
    16. Bretschger, Lucas, 2021. "Getting the Costs of Environmental Protection Right: Why Climate Policy Is Inexpensive in the End," Ecological Economics, Elsevier, vol. 188(C).
    17. Hoel, Michael, 2016. "Optimal control theory with applications to resource and environmental economics," Memorandum 08/2016, Oslo University, Department of Economics.
    18. Alain Quinet, 2019. "What Value Do We Attach to Climate Action? [Quelle valeur donner à l’action pour le climat ?]," Post-Print hal-05304423, HAL.
    19. Alcott, Blake, 2008. "The sufficiency strategy: Would rich-world frugality lower environmental impact," Ecological Economics, Elsevier, vol. 64(4), pages 770-786, February.
    20. Pete Maniloff & Dale T. Manning, 2015. "Division of Nonrenewable Resource Rents: A Model of Asymmetric Nash Competition with State Control of Heterogeneous Resources," Working Papers 2015-08, Colorado School of Mines, Division of Economics and Business.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjz:ajisjr:1026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.