Abstract:
The oil sector is one of the most critical sectors to economic and social development of Nigeria. Adequate oil supply is not only a strategic input for national development but it is undoubtedly the most vital input in transforming the industrial sector for economic growth. Particularly in Nigeria where oil is the dominant source of revenue contributing more than 80% of its revenue and 90% of its foreign exchange income. Even with this contribution of the oil into our national Economy, Nigerians are yet to enjoy the basic necessities of life. Nigeria have witnessed several demonstrations against poor supplies, frequent increase in the pump price of refined petroleum products. In order to alleviate the burden on the Nigerian citizenry, the federal government introduce subsidy, which was to make price of petroleum products cheaper for Nigerians. But, unfortunately the price of the product continues to escalate even with the billions of naira spent on subsidy. It is against this background that this work seeks to interrogate the pattern of politics involved in the removal of oil subsidy in Nigeria and to examine its socio-economic implications. To address this problem therefore, the study adopted a survey research design. The main instrument utilized for eliciting primary and secondary data was the survey questionnaire complimented by interviews. The method of data analysis used was simple percentage. The neo-liberal theory was used as a framework of analysis. The finding revealed that the partial fuel subsidy removal in Nigeria has impacted on socio economic development of Nigerians, mostly in the areas of social welfare funding and also discovered that the pattern of politics involved in the desubsidization of petroleum product was based on personal interest of some personalities involved to achieved their selfish grip. The study therefore recommended that there is a need for federal government to do more in terms of developing other sectors of the economy such as education, transportation, agriculture, health and provision of social amenities to impact much on socio-economic life of Nigerians and more so, government should be determined and look more into the issue of corruption in the oil industry in Nigeria.
