The Impact of Gasoline Subsidy Removal on the Transportation Sector in Nigeria

Ismail O. Soile, Hezekiah Tsaku, and Bilikisu Musa Yar'Adua, “The Impact of Gasoline Subsidy Removal on the Transportation Sector in Nigeria.” American Journal of Energy Research, vol. 2, no. 3 (2014): 60-66. doi: 10.12691/ajer-2-3-3.

7 Pages Posted: 20 Jun 2015

See all articles by Ismail Soile

Ismail Soile

University of Lagos; University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)

Hezekiah Tsaku

University of Dundee

Bilikisu Musa-Yar'Adua

University of Dundee

Date Written: June 10, 2014

Abstract

Nigeria, like other oil exporting countries in the world has embarked on the policy of gradual removal of fuel subsidies since 1970s. However, this issue has become highly contentious in recent time due to the incessant nature and the effects on the economy. To this end the paper examine the impact of subsidy removal on transport sector development in Nigeria using the co-integration and error-correction models. The result showed that subsidy had a positive and significant relationship with transport sector which implies that removing gasoline subsidies can increase the operational cost of transportation sector and reduce the gross domestic product (GDP) of the country.

Keywords: gasoline, subsidy, transportation sector, Nigeria

JEL Classification: C22, H29

Suggested Citation

Soile, Ismail and Tsaku, Hezekiah and Musa-Yar'Adua, Bilikisu, The Impact of Gasoline Subsidy Removal on the Transportation Sector in Nigeria (June 10, 2014). Ismail O. Soile, Hezekiah Tsaku, and Bilikisu Musa Yar'Adua, “The Impact of Gasoline Subsidy Removal on the Transportation Sector in Nigeria.” American Journal of Energy Research, vol. 2, no. 3 (2014): 60-66. doi: 10.12691/ajer-2-3-3.. Available at SSRN: https://ssrn.com/abstract=2620982

Ismail Soile (Contact Author)

University of Lagos ( email )

Akoka
PMB 4491
Akoka, Lagos State 00234
Nigeria
+2348076184184 (Phone)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP) ( email )

Nethergate
Dundee, Scotland DD1 4HN
United Kingdom

Hezekiah Tsaku

University of Dundee ( email )

Dundee, Scotland DD1 4HN
United Kingdom

Bilikisu Musa-Yar'Adua

University of Dundee ( email )

Dundee, Scotland DD1 4HN
United Kingdom

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