Assessing The Compensation And Reinvestment Plans For Fuel Subsidy Rationalization In Nigeria

Ibrahim, Shittu (2024) Assessing The Compensation And Reinvestment Plans For Fuel Subsidy Rationalization In Nigeria. PhD thesis, Perpustakaan Hamzah Sendut.

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Abstract

Nigeria completely rationalized fuel subsidies in may 2023. To cushion the effect of this policy, the government rolled out ambitious plans to recycle proceeds from the subsidy removal to compensate vulnerable households and reinvest in critical sectors of the economy. Yet these plans have prompted some unsettling questions regarding their potential impacts, adequacy, and efficiency. This research utilizes the 2018 social accounting matrix data for nigeria and employs a dynamic computable general equilibrium model to assess the compensation and reinvestment plans of the government. The objectives of the study are: (i) to examine the impact of fuel subsidy rationalization without compensation and reinvestment, (ii) to examine the impact of fuel subsidy rationalization with compensation and reinvestment, (iii) to assess the efficiency of resource allocation between compensation and reinvestment expenditure, (iv) to identify an optimal timeline for implementing the compensation and reinvestment plans and (v) to identify a policy pathway for efficient resource allocation and optimal implementation timeline. Results from the research show that subsidy removal without compensation and reinvestment brings detrimental impacts to the economy and significant welfare losses to all households.

Item Type: Thesis (PhD)
Subjects: H Social Sciences > H Social Sciences (General) > H1-99 Social sciences (General)
Divisions: Pusat Pengajian Sains Kemasyarakatan (School of Social Sciences) > Thesis
Depositing User: Mr Hasmizar Mansor
Date Deposited: 25 Feb 2026 01:28
Last Modified: 25 Feb 2026 01:28
URI: http://eprints.usm.my/id/eprint/63656

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