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Towards Sustainable Fuel Subsidy Reform in Nigeria

Time (GMT +00) 11:45 13:00
Image credit:Bolarzeal
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11:45 - 13:00 GMT / 12:45 - 14:00 GMT+1

This launch event presents ODI and the Centre for Climate Change and Development’s (CCCD) research on Nigeria’s fuel subsidy reform, its impacts of on different groups as well as challenges of process and outcomes that affect the sustainability of reform.

Nigeria’s petrol fuel subsidy was removed in May 2023 amidst political consensus that it was incurring unsustainable and inequitable costs. The research shows that failure to mitigate the short-term socioeconomic effects of subsidy reform will have multi-level consequences across Nigeria’s economy and populations. It could harm the most vulnerable segments of Nigeria’s population and introduce political risks as experienced by similar attempts by former governments.

The findings highlight savings from subsidy reforms could be allocated towards other priorities, including key development priorities around health and education, as well as building cleaner, more efficient, affordable, and equitable electricity generation systems.

ODI and CCCD will each give brief presentations on research findings: ODI conducted a desk review and interviews to understand the elite-level political settlement in Nigeria’s fuel sector and opportunities for socially inclusive reallocation of savings from subsidy reform. CCCD will present the findings relating to the distributional effects of fossil energy subsidy reform (across income groups) and understand potential remedies and opportunities to design and implement fossil energy subsidy reform and revenue recycling efforts.


  • Nick Simpson

    Dr Nick Simpson

    Senior Research Fellow, ODI

  • Shandelle Steadman

    Shandelle Steadman

    Senior Research Officer, ODI

  • Professor Chukwumerije Okereke headshot

    Professor Chukwumerije Okereke

    Director, Centre for Climate Change and Development, AEFUNAI

  • Chukwuemeka Emenekwe

    Chukwuemeka Emenekwe

    Research Fellow and Development Economist, AEFUNAI

  • Hon. Solomon Maren headshot

    Hon. Solomon Maren

    Representative for the Mangu/Bokkos federal constituency, Plateau State, Nigeria

  • Kathryn Nwajiaku-Dahou.jpg

    Kathryn Nwajiaku-Dahou

    Director, Politics and Governance programme, ODI

  • Sam Onuigbo headshot

    Hon. Sam Onuigbo

    Chairman, House of Representatives Committee on Climate Change, Nigeria