Politics of the Fuel Subsidy Regime, Subsidy Removal, and Nigeria’s External Relations

This study examines the implications of fuel subsidy removal for Nigeria’s external relations. Employing the ex-post facto research design, the primary data for the study were generated from focus group discussions with foremost economists, policy analysts, and experts in the oil sector. Other information was sourced from texts, periodical reports of the Central Bank of Nigeria, National Bureau of Statistics, Petroleum Products Pricing Regulatory Agency, Nigerian National Petroleum Corporation Limited, and Nigerian Statistical Bulletin. A qualitative descriptive method is used to analyse the data. Anchored on a theoretical perspective of linkage politics, the study finds that subsidy removal, which is Nigeria’s domestic policy, has far-reaching impacts on the nation’s external relations. The policy ultimately shapes relations between Nigeria and other states on the global scene. Nigeria must effectively manage the challenges brought about by subsidy removal to maintain and strengthen its international ties and to open doors for more trade and investment with nations that are strategic to its development aspirations.