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.
You might also be interested in
Are Countries Walking the Talk on Cutting Carbon?
In the race against climate change, increasing ambition over time is key. But revised commitments from parties to the Paris Agreement lack two critical components of ambitious climate action.
Gender and Fossil Fuel Subsidy Reform in Nigeria: Findings and recommendations
The report examines from a gender perspective the impact of kerosene subsidies and their reform in Nigeria, finding that kerosene subsidies did not work for poor women.
One Fuel, Two Prices: International experiences with dual pricing of fuel
This briefing note sets out some basic information about international experiences with “dual pricing”: selling the same fuel product at two different prices to different types of consumers
Making Subsidy Reform Work for Women in Nigeria
Kerosene subsidies in Nigeria are inefficient and wasteful—but will kerosene subsidy reform disproportionately affect women, due its primary use as a household lighting and cooking fuel? This policy brief explores principles for making subsidy reform work for women in Nigeria.