FUEL SUBSIDY AND NIGERIANS’ WELFARE

Abstract

Fuel subsidies tend to disproportionately benefit higher-income groups who consume more fuel, rather than effectively targeting the most vulnerable segments of society. This regressive nature of subsidies can exacerbate income inequality and hinder efforts to achieve equitable socio-economic development. To ensure the welfare of Nigerians, it is vital to adopt a comprehensive and sustainable approach to energy pricing and subsidy reform. This approach should involve phasing out fuel subsidies gradually, while simultaneously implementing targeted social safety nets and support programs for the most vulnerable populations. Moreover, it is crucial to invest in alternative energy sources and infrastructure to reduce reliance on fossil fuels in the long run, promoting a more sustainable and environmentally friendly future. Ultimately, striking a balance between short-term relief and long-term sustainable development is essential to improve the welfare of Nigerians. By carefully evaluating the costs and benefits of fuel subsidies and implementing well-designed policies, the government can work towards a more equitable and prosperous society for all its citizens.