Subsidy Removal And How It Affects Academic Research
Introduction
Scholars
and international organizations have long advocated for the elimination of
gasoline subsidies due to the market distortions that result. In 2012, the
Goodluck Ebele Jonathan administration began a partial deregulation of the
Nigerian downstream oil sector, or the partial removal of fuel subsidies in
Nigeria, but it was unsuccessful due to a few strong political tycoons in the
country who insisted that the removal of subsidies would cause a lot of
difficulties for Nigerian citizens and how research engage in research in
developing project topics .
Also
in 2019, the Buhari administration attempted to eliminate subsidies, but the
arrival of the Corona Virus in 2019 (COVID-19) made it impossible. At the time,
the Nigerian government was grappling not only with leveling the curve of
COVID-19 but also with a drop in revenue at a critical period when funds were
needed to combat the spread of the coronavirus in the country. The falling
government revenue was caused by the international market collapse of crude oil
prices as a result of several countries' efforts to halt the worldwide spread
of the coronavirus. As a result, more emphasis was placed on making citizens'
lives easier and more worthwhile, hence sustaining the payment of the fuel subsidy; get more insights on fuel subsidy on banking and finance project topics for students.
Recently,
the newly inaugurated presidents, led by Chief Bola Ahmed Tinubu, pledged full
liberalization of the downstream oil sector or the abolition of all gasoline
subsidies in the country. Within 30 minutes of the president's address, not
only do fuel prices rise automatically, but so do the costs of transportation,
food, and manufacturing. This has generated consternation among Nigerians
because everyone has been affected, either directly or indirectly. This article
is specific to examining how the removal of fuel subsidies will affect academic
research in Nigeria.
What is Subsidy?
A subsidy is any government program
that lowers the price of a good or service that is consumed by citizens
compared to what the price would have been without the existence of the policy.
According to Kadiri and Lawal (2016), a subsidy is a decrease in the market
price of products and services by the government so that people with limited
purchasing power can obtain such goods and services. It occurs when the
government assists customers in paying a price that is lower than the market
price for consumer products.
Effect of Subsidy Removal on
Academic Research
Since
the removal of subsidies has led to a hike in the price of fuel, which
automatically leads to inflation in the country, it is evident that this hike
in the price of fuel will affect the productivity of academic researchers
around the country, and the following is how it will:
Delay in Publications
In Nigeria,
an academic researcher, be it a lecturer or a student, always has power issues
and solely depends on the use of a generator for a smooth and constant power
supply since electricity is not to be depended on. With the removal of
subsidies, the cost of engaging in and writing research will be on the
high side as the cost of patrol increases, which may lead to a delay in the
publication of academic research.
Lost interest in Research
Due
to the removal of subsidies, which leads to a high price of fuel in Nigeria,
some academics may lose interest in research due to the fact that they do not
have enough funds to take care of their daily needs, let alone enough funds to
buy fuel to write research in this time of urgent inflation.
Other
effects of subsidy removal on academic research include disruptions of
seminars, presentations, and conferences due to the high cost of transportation
and other extra costs of making such effects visible. Further, some academic
researchers who do not get support from cooperating organizations may even stop
researching since they do not have enough funds to fuel their continuous
research.
In
summary, despite the positive effect that the removal of subsidies can have on
the economic growth of Nigeria, it is evident that while the process is in
place, researchers and academia may face a series of challenges in their line
of work; hence, support should be provided for researchers, especially in this
period, to aid their professions.
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