AWKA/Nigeria: The Centre for Climate Change and Development (CCCD) at Alex Ekwueme Federal University, in collaboration with the Overseas Development Institute (ODI) London, is set to unveil the pivotal outcomes of a national research shedding light on Nigeria’s subsidy reform and its implications for the country’s energy transition agenda.
Conducted by the CCCD and ODI, the research delved into comprehending the ramifications of fuel subsidy reform and its foreseeable near-term effects. Utilizing a blend of extensive literature review, economic modeling techniques, and interviews with key stakeholders in Nigeria, the study explored the intricacies surrounding subsidy reform vis-a-vis Nigeria’s energy transition agenda.
The findings proffer a comprehensive roadmap for a politically astute, socially inclusive reform, and reallocation of public funds, signaling a crucial initial step towards planning a just and equitable transition away from fossil fuels.
President Bola Ahmed Tinubu’s announcement in May 2023 to immediately remove Nigeria’s petroleum subsidy, precipitating sharp hikes in end-user fuel prices, underscored the urgency and complexity of subsidy reform. However, while the rationale for reform remains compelling, significant concerns persist regarding the methodology, repercussions, and sustainability of the reform.
Failure to address the short-term socio-economic repercussions of subsidy reform could engender multifaceted consequences across Nigeria’s economy and populace, particularly affecting vulnerable segments of the population and introducing political risks to reform sustainability, akin to previous administrations’ experiences.
Furthermore, a perceived lack of transparency within the sector could impede efforts to identify other avenues through which state revenues are lost, exacerbating hindrances to sector reform and precipitating a slew of environmental, social, and economic challenges.
Scheduled for March 14th, 2024, from 12:00–13:30 WAT, the online workshop will be spearheaded by Dr. Nwajiku-Dahou, Director of the Politics and Governance Programme at the Overseas Development Institute, and Professor Chukwumerije Okereke, Director of the Centre for Climate Change and Development at Alex Ekwueme Federal University, Ndufu-Alike, Nigeria (CCCD-AEFUNAI).
Hon. Sam Onuigbo, member of the governing board and Chairman of the Committee on Climate Change of the North East Development Commission, and Hon. (Eng). Solomon Bulus Maren, National Coordinator of the African Parliamentary Network on Climate Action, are slated as guests of honor for the event.
In anticipation of the workshop, Prof. Chukwumerije Okereke, Director of the Centre for Climate Change and Development, articulated the alignment of the research with the Centre’s mission to collaborate with premier international partners in conducting high-quality research aimed at fostering climate-resilient and sustainable development in Nigeria and Africa.
Okereke expressed optimism that the Federal government would leverage the research findings to reform the fuel subsidy in a manner that is equitable, progressive, and aligned with the country’s energy transition objectives.
