Over the years, fuel subsidies have been a subject of discussion on effects it has on the economy of an area of which this research study seeks to analyze the effects of fuel subsidies in Nigeria and the benefits as well as disadvantages of this policy. Subsidies have especially been used to ensure the prices of fuel are relatively low to allow inflation control, hence ensure social stability. But they have also brought in considerable expenses, manipulated the market price and promoted corrupt practices and smuggling. The above-suited pull back by President Bola Tinubu in May 2023 was predicted to slowly raise inflation and cost of living, especially within the lower income segment. Based on the Indonesian, Iranian and Venezuelan experiences, the paper presents the notions of gradualism in subsidy popping, selective welfare spending and development of renewable energy resources. Recommendations are such aspects as gradual subsidy withdrawal, more openness, and shifting of the subsidies towards infrastructure and social needs. The study finally, therefore emphasizes on the imperative of exercising keen vigil whenever there is transition to guarantee stabile economic progress and better standards of living.
Keywords: Economy, Fuel, Inflation, live, subsidy, sustainable implication
