The Historical Evolution of Fuel Subsidy Policies in Nigeria and Their Socio-Economic Impact

Introduction. Analysis of fuel subsidy policies in Nigeria reveals their impact on the state budget and living standards of the population, and also contributes to the formation of more efficient and sustainable energy strategies. The aim of the article: to analyze the historical stages of fuel subsidy policy in Nigeria and its socio-economic impact. Materials and methods. The research utilized articles from peer-reviewed international journals as well as scientific collections published by Springer, covering topics related to African economic, social, and political development, among others. The methodology included an analysis of the advantages and disadvantages of subsidy policies’ impact on the population of Nigeria. Results. The abolition of fuel subsidy policies in 2023 provided long-term sustainability despite immediate policy adjustments. It emphasizes the need for targeted investments in renewable energy sources and the improvement of policies aimed at minimizing the negative consequences of reforms in the energy sector, contributing to the achievement of sustainable development goals. Conclusion. The historical evolution of fuel subsidy policies in Nigeria is complex and shows the interplay between economic stability, social well-being, and public interest. Currently, Nigeria pursues proper consistency and reforms to achieve a more sustainable economic model. This model involves reinvesting released resources in infrastructure development, welfare programs, and diversification for long-term economic sustainability.