Fuel Subsidy and Poverty Reduction in Nigeria (1990 – 2012)

ABSTRACT This study unraveled the political and socio-economic factors that made Nigeria to import fuel which is supposed to be its major export. Primary and secondary sources were used to generate data. From the data generated, the study concluded that among other factors, corruption is the primary factor for which Nigeria refineries are not working and the importation of fuel. To address the situation, the work recommended that the federal government should engage experts instead of political contractors for the Turn Around Maintenance (TAM) of the existing refineries and should quickly work-out public-private partnership strategy with major oil companies in Nigeria such as shell BP, Cheveron, Exxon-Mobil for the establishment of more refineries in Nigeria.

TABLE OF CONTENTS

Title page - - - - - - - - - i

Approval page - - - - - - - - ii

Dedication - - - - - - - - - iii

Acknowledgement - - - - - - - iv

Abstract - - - - - - - - - v

Table of contents - - - - - - - - vi

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study - - - - - - 1

1.2 Statement of the Problem - - - - - - 6

1.3 Objectives of the Study - - - - - - 8

1.4 Significance of Study - - - - - - 8

1.5 Scope and Limitation of the Study - - - - 9

CHAPTER TWO: LITERATURE REVIEW

2.1 The Concept of Deregulation - - - - - - 10

2.2 Deregulation in Nigerian Perspective - - - - 12

2.3 Subsidy - - - - - - - - 14

2.4 Fuel Subsidy and poverty reduction in Nigeria - - - 17

2.5 The History of Fuel Subsidy Removal and Pump Price

 Increases in Nigeria - - - - - - 21

2.6 The Rational for Fuel Subsidy - - - - - 27

2.7 The Rational Against Fuel Subsidy - - - - 29

2.8 The State of Nigeria Refineries - - - - - 35

2.9 What Led to Fuel Importation in Nigeria - - - 37

2.10 The Type of Deregulation Nigeria Needs - - - 40

2.11 Hypothesis - - - - - - - - 42

vii

2.12 Operationalization of key Concepts - - - - 42

CHAPTER THREE: METHODOLOGY

3.1 Location of Study - - - - - - - 43

3.2 Population of the Study - - - - - - 43

3.3 Sample Size - - - - - - - 43

3.4 Sampling Technique - - - - - - 44

3.5 Method of Data - - - - - - - 44

3.6 Method of Data Presentation and Analysis - - - - 44

3.7 Theoretical Framework - - - - - - 45

CHAPTER FOUR: DATA PRESENTATION, FINDINGS AND DISCUSSION

4.1 Data Presentation and Analysis - - - - - 50

4.2 Findings - - - - - - - - 60

4.3 Discussion of Findings - - - - - - - 61

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary - - - - - - - - 65

5.2 Conclusion - - - - - - - - 66

5.3 Recommendations - - - - - - - 67

Bibliography

Appendix I

Appendix II