Global Advanced Research Journal of Agricultural Science (GARJAS) ISSN: 2315-5094
December 2014 Special Anniversary Review 2014 Vol. 3(12): pp. 400-408
Copyright © 2014 Global Advanced Research Journals



The Effects of Subsidy Removal on Food Items in Nigeria: The Battle Ahead

R.O. Oji  and Eme, Okechukwu Innocent


1National Boundary Commission Abuja.

2Department of Public Administration and Local Government Studies, University of Nigeria, Nsukka

*Corresponding Author’s

Tel:+234(0)8056753011; 08022829785.

Accepted 24 November, 2014



Governments faced with growing budget deficits are cutting much social expenditure, including costly food subsidy programs that have provided benefits to the rich and poor alike. Because the poor spend a larger share of their income on food than do the rich, however, such cuts usually have negative distributional, welfare and nutritional effects. One of the most contentious issues in the country since the beginning of this year is that of whether or not the government actually pays subsidy on petroleum products enjoyed by Nigerians. The government claimed that the burden of subsidy that amounted to N1.3billion last year was too much for it to bear. As a result of this, the government on January 1, 2012 increased the pump price from N65 to N140. Nigerians protested in a manner that was never witnessed. At the end of the day President Jonathan was forced to reduce the price to N97 per litre of petrol. Since then, there have been allegations and counter allegations regarding the veracity of government’s claims on subsidy. The truth of the matter is that Nigerians deserve to know why they are being forced to pay for the ineptitude of government in the name of subsidy. As a result of the removal of the subsidy, there has been major increase in the process of food items across the Nigerian cities in the two months. The paper examines the effects of the subsidy removal on the prices of food stuffs in Nigeria since 2012. The paper concludes by positing that Nigerians are daily grapping with increases in prices of food and other essential items without commensuration from government.

Keywords: Subsidy, Food stuff, Exploitation, Political crisis, De-regulation and Petroleum Products.


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