International Monetary Fund and the Implementation of Fuel Subsidy Removal in Nigeria, 2011-2023

The fuel subsidy issue in Nigeria is supported by factual evidence showing its significant economicburden, corruption issues, inefficiencies in investment, and regressive impacts on social equity.This project seeks to explore the impact of IMF recommendations on Nigeria’s fuel subsidy policyfrom 2011 to 2023, assess the economic and social consequences of the subsidy regime, andevaluate the successes and failures of subsidy reforms: Based on this, the following researchquestions have been formulated. (1) Does the foreign exchange reserve of Nigeria affect thestandard of living of her citizens? (2) Does the unemployment rate in Nigeria influence the rise offuel smuggling? To interrogate these research questions, the study was anchored on documentarymethod as the method of data generation. Our methods of data analysis were based on contentanalysis and the qualitative method. The study is based on the Rentier state theory and the Ex postfacto research design. The study contends that the impact of foreign reserves on the growth of theNigerian economy is not felt positively as the standard of living of the citizens have reduceddrastically especially with the removal of the fuel subsidy. It also concludes that the rise inunemployment rate which is also a negative implications of the removal of the fuel subsidy is ahuge factor which increases fuel smuggling in Nigeria. The study recommends amongst others thatthe government should seek to put in measures that will ameliorate the hardship on the citizensand ensure economic growth and sustainability.