We explore the impact of fuel subsidy removal on cross-border fuel smuggling in Nigeria. Using trucking data for premium motor spirit movement across the country and the linear mixed-effects model to test for mean differences, the results confirm a significant reduction in fuel consumption, especially by border States after subsidy removal, suggesting cross-border smuggling. The results imply that removing the fuel subsidy was the right policy decision.
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Musa et al. (2024) studied this question.
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