Removal of Petrol Subsidies and its Impact for Democratic Governance in Nigeria

Abstract

The removal of petrol subsidy in Nigeria has been a contentious issue with profound implications for democratic governance. While it has been argued that subsidy removal will lead to fiscal savings, which could be channelled to infrastructure, education, and health; stimulate the domestic refining sector; and attract foreign investment, it was also observed that the policy has a potential negative impact on the prices of goods, transportation, and the general living condition of the average Nigerian. This paper delves into the socio-economic ramifications of the policy decision and its intricate relationship with democratic governance in Nigeria. The paper adopts a qualitative method, while secondary sources of data were utilised. The paper is anchored on the political economy theory. Findings reveal that measures were not put in place to mitigate the negative effects of the removal of petrol subsidy on the average Nigerian; otherwise, it is a step in the right direction towards economic nationalism and effective democratic governance. Consequently, the paper recommends that there is a need for transparency, public engagement, and prudent management of resources to ensure the benefits of subsidy removal are equitably distributed in order to enhance the democratic ethos of the country.