IMPACT OF FUEL SUBSIDY REMOVAL ON PUBLIC PROJECTS DELIVERY IN NIGERIA

Abstract

The study examined the impact of fuel subsidy removal on public project delivery in Nigeria. The specific Objectives are as follows: to identify the effect of inflation on public project delivery and to examine the effect of crime on public project delivery in Nigeria. The study adopted the purposive survey method to have instant access to the most critical members of the study population using a sample of 282 respondents as oil and gas experts from the upstream, midstream, and downstream sectors of Nigeria National Petroleum Company Limited (NNPCL) in Nigeria. Primary data was collected using a questionnaire designed with a five-point Likert scale for the study. The data was analyzed using the semantic weighted average method, spearman’s rank correlation, and regression. The result revealed that Inflation has no significant effect on public project delivery with a value of 3.26 and correlation coefficient (r) = -1 and Crime has no significant effect on public project delivery with a value of 3.22 and correlation coefficient (r) = -1 in Nigeria. The study concluded that fuel subsidy removal has no significant effect on public project delivery in Nigeria. The study recommended that the government should ensure that the additional revenue from subsidy removal is transparently managed and allocated towards critical infrastructure projects.