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Energy Subsidies in Nigeria

The GSI’s program of work in Nigeria undertakes research and policy engagement on subsidies for fuel consumers and renewable energy.

Research

Objectives
  • Reduce overall fossil fuel subsidy expenditure
  • Improve the fair social distribution of subsidy expenditure
  • Ensuring that subsidy reforms are gender sensitive and promote gender equality
  • Increase clean energy access and use, particularly among poorer households
Collaborations

In carrying forward this work, the Global Subsidies Initiative has collaborated primarily with the Facility for Oil Sector Reform (FOSTER) and Spaces for Change (S4C).

How Fossil Fuel Subsidy Reform Could Get Us on Target Towards Universal Energy Access

Sustainable Development Goal (SDG) 7 calls upon the global community to ensure access to affordable, reliable, sustainable and modern energy for all by 2030. The High-level Political Forum on Sustainable Development (HLPF) in New York noted progress, but also established that the world is still not on track to reach the targets on energy access, energy efficiency and renewable energies.

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Reports: Compensation Mechanisms for Fuel Subsidy Removal in Nigeria

Since the end of 2015, the Buhari government has introduced major reforms to gasoline and kerosene subsidies, with a new “price modulation” policy that has seen upward adjustments in the price of both fuels—at the same time that major problems with supply continue, driving domestic prices above official levels in many areas. This study conducts a detailed analysis of the compensation mechanisms that could be used to mitigate the impact of fuel subsidy removal on weak and vulnerable segments of Nigerian society. The study suggests actionable proposals that the government could pursue if it decides that it must mitigate the social impact of ongoing future price increases as well as pro-poor policies in which the government could invest as part of its general budgeting, given the fiscal space created by subsidy reforms.

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Reports: Gender and Fossil Fuel Subsidy Reform: Current status of research

This report explores current knowledge on energy subsidy reforms and gender through a review of existing literature. First, it sets out the global context of energy subsidies, energy access and gender empowerment. It then reviews literature on gender, energy access, fossil fuel subsidies and mitigation measures related to subsidy reform, such as cash transfers. Finally, it provides an overview of these issues across three focus countries: Bangladesh, India and Nigeria, as well as case studies on Peru, Mexico and Morocco.

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