Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #4278

"Impacts of Removing Refined Oil Import Subsidies in Nigeria on Poverty"
by Siddig, Khalid, Angel Aguiar, Harald Grethe, Peter Minor and Terrie Walmsley

The crude oil sector in Nigeria contributes substantially to the economy; however, these benefits are being compromised by significant subsidies on refined oil imports. The refined oil subsidy is paid primarily on imported fuel because domestic refineries cannot satisfy the national demand at current prices. Low fuel prices are considered an important benefit to the Nigerian people, where more than half the population lives in poverty in this oil rich country. The costs of these subsidies have been rising in recent years, due to volatile refined oil prices and the cost of corruption. Previous governments have attempted to remove the subsidy without success. Removing the fuel subsidy, therefore, remains one of the most intricate socioeconomic policy issues in Nigeria. In this paper, we use an economy-wide framework to identify the impact of removing the fuel subsidy on the Nigerian economy. Policy alternatives that target certain households and promote domestic production of refined oil are discussed. The results show that accompanying a subsidy reduction with a transfer of income to poor households alleviate some of the negative impacts on households.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Energy Policy (authors)
Date: 2014
Created: Batta, G. (5/31/2013)
Updated: Minor, P. (5/8/2014)
Visits: 6,034
- Economic analysis of poverty
- Other data bases and data issues
- The GTAP Data Base and extensions
- Africa (West)

If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.

Public Access
  File format GTAP Resource 4278  (1.2 MB)   Replicated: 0 time(s)

Restricted Access
No documents have been attached.

Special Instructions
No instructions have been specified.

Comments (0 posted)
You must log in before entering comments.

No comments have been posted.