Simulating the Inflationary Effects of Fuel Subsidy Removal in Nigeria: Evidence From a Novel Approach

Author:

Raifu Isiaka Akande1ORCID,Afolabi Joshua Adeyemi2ORCID

Affiliation:

1. Centre for the Study of the Economies of Africa, Nigeria

2. Nigerian Institute of Social and Economic Research, Nigeria

Abstract

This study simulates the effect of fuel subsidy removal on different categories of inflation in Nigeria using the novel dynamic simulated autoregressive distributed lag framework. Findings revealed heterogeneity in the inflationary effect of an increase in premium motor spirit price across locations, and that the recent fuel subsidy removal in Nigeria will have long-lasting negative inflationary effects.

Publisher

Asia-Pacific Applied Economics Association

Reference11 articles.

1. Empirical analysis of oil price changes on inflation in Nigeria;Melemi Abatcha;Journal of Management and Economic Studies,2021

2. A Small Macroeconometric Model of Nigeria;Alarudeen Aminu;Economy,2019

3. Quarterly statistical bulletin;Central Bank of Nigeria,2023

4. Fuel subsidy reform and the social contract in Nigeria: A micro-economic analysis;Neil McCulloch;Energy Policy,2021

5. Nigeria Multidimensional Poverty Index, 2022;National Bureau of Statistics,2022

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