Fuel Subsidy Corruption and the Illusions of Economic Reconstruction in Nigeria

The fuel subsidy patchwork in Nigeria has been fraught with elite manipulations and intrigues. This paper analyses the debilitating state of Nigeria’s energy-dependent economy against the backdrop of unprecedented oil-generated opulence. The article relies on secondary data. This method enabled the author draw heavily on recorded data thus making for an in-depth analysis. It was found that rampant corruption in the nation’s sprawling oil sector is hugely responsible for the intractable economic development slow-motion that has worsened the plight of ordinary Nigerians. While the country’s refineries remain moribund, fuel subsidy has, instead created leeway for the criminally-minded elite to squander the commonwealth. Government has demonstrated little or no political will to stem the decay in the oil sector, as underlined by her reluctance to prosecute oil thieves, some of whom are directly or indirectly connected to the apparatus of the state. Unlike in Ghana where government engaged the people and introduced measures to cushion the harsh effects of fuel subsidy phase-out on the poor, in Nigeria, government has often increased the cost of petrol before ever addressing its impacts on vulnerable groups. The paper therefore recommends the revamping of the country’s refineries, the strengthening of the fight against corruption and the establishment of a regulatory framework to protect citizens as necessary measures to help improve the poor state of Nigeria’s economy and society