Energy Subsidies in Nigeria

The report examines from a gender perspective the impact of kerosene subsidies and their reform in Nigeria, finding that kerosene subsidies did not work for poor women.

This report looks at the impact of subsidies to kerosene and liquefied petroleum gas (LPG) and subsidy reform from a gender perspective across three countries: Bangladesh, India and Nigeria. Download from Energia.

Sustainable Development Goal (SDG) 7 calls upon the global community to ensure access to affordable, reliable, sustainable and modern energy for all by 2030. The High-level Political Forum on Sustainable Development (HLPF) in New York noted progress, but also established that the world is still not on track to reach the targets on energy access, energy efficiency and renewable energies.

This side event focused on fossil fuel subsidy reform as a means to deliver the Sustainable Development Goals (SDGs), including through opportunities for financing and sustainable energy access.

Sustainable Development Goal (SDG) 7 calls upon the global community to ensure access to affordable, reliable, sustainable and modern energy for all by 2030.

Since the end of 2015, the Buhari government has introduced major reforms to gasoline and kerosene subsidies, with a new “price modulation” policy that has seen upward adjustments in the price of both fuels—at the same time that major problems with supply continue, driving domestic prices above official levels in many areas. This study conducts a detailed analysis of the compensation mechanisms that could be used to mitigate the impact of fuel subsidy removal on weak and vulnerable segments of Nigerian society. The study suggests actionable proposals that the government could pursue if it decides that it must mitigate the social impact of ongoing future price increases as well as pro-poor policies in which the government could invest as part of its general budgeting, given the fiscal space created by subsidy reforms.