THE POLITICS OF FUEL SUBSIDY AND POVERTY IN NIGERIA 2012-2023

The study examines the politics of oil subsidy and poverty in Nigeria 2012-2023. Questionnaire was used to illicit responses from the respondent. Neo- Liberal theory was adopted as a framework to guide the analysis. The findings of this study showed that fuel subsidy revealed that fuel subsidy will eliminate incentives for corruption and excess profiteering by an unpatriotic cabal in the petroleum sub sector. It will minimize borrowing and save money for investing into job creation, power and transport infrastructure and others. It will eliminate capital flight and build Nigeria’s foreign reserve in order to position the economy for speedy growth and global competitiveness. The study also showed that as a result of oil subsidy removal the cost of doing business has equally respond to the trend. Fuel subsidy removal affected transport fare and motorist doubled transport charges. Increases in transportation always have ripples effects on other social issues. The prices of food stuff also went up. House rents across countries have increased drastically and the argument is that fuel price had affected the price of cement astronomically. Finally, the study revealed that to reduce the impact of oil subsidy on poor Nigerians the administration has devised a comprehensive palliative plan. President Tinubu’s government has strengthened existing social safety net programs, such as National Social Investment Program (NSIP), to provide direct support to the most vulnerable segments of society. Through targeted interventions, including cash transfers, school feeding programs, and conditional cash transfers, the administration aims to alleviate the immediate impacts of fuel subsidy removal on the most affected groups. Also, recognizing the increased transportation cost that may arise from fuel subsidy removal on the most affected groups. Also, recognizing the increased transportation costs that may arise from fuel subsidy removal, president Tinubu’s administration plans to invest in improving public transportation systems. This includes expanding the availability and efficiency of mass transit options, enhancing intra-city transportation networks, and promoting the use of alternative fuels and electric vehicles. These initiatives will help reduce the overall transportation burden on citizens and enhance the affordability of commuting. The study recommended that the government must fast track the affordability of commuting. The study recommended that the government must fast track the turnaround maintenance of the four refineries and encourages the building of new ones. this will help reduce the dependence on importation of refined products and protect the economy from the volatility of global oil prices. The governance structure should be more cost effective and corruption must more effectively tackled. Government must sustain the momentum of dialogue and enlightenment to stabilize the polity and ensure accountability and transparency in the use of savings from the policy decision for the benefit of the people.