Abstract:

This paper traces the history of the discovery of petroleum (oil) in commercial quantities in Nigeria as well as the evolution of fuel subsidy in the country. The paper also attempts to look at the quantum of money spent as fuel subsidy by successive governments, especially the last two administrations of Presidents Goodluck Ebele Jonathan and Muhammadu Buhari. The paper examines the removal of fuel subsidy on May 29, 2023 by the present administration of President Bola Ahmed Tinubu, and looks at the positive and negative impacts of such action. The paper concludes that the objective of fuel subsidy removal in the country has not been achieved and then provides the way forward in mitigating the effects that accompany fuel subsidy removal.