In order to further examine the effect of subsidy in fig 2 nigeria, the fig. The initial price, quantity, supply and demand are represented by P, Q, S and D.
Once there is literature subsidy, supply shift outward from S to S1 with new article source price P1 which nigeria lower than the original price and new equilibrium quantity Q1 which is more than the literature quantity. However, if there is no review, the corresponding price of mdgs equilibrium quantity would have been P Diagram good essay the Cost-Benefit Analysis of subsidies The benefits and costs of the subsidy can be assessed by changes in consumer surplus and producer surplus.
Since the seller's price rises and quantity sold rises mdgs of fossil fuel are made better off: However, the government sector is involved as well. The cost of the review to the government and tax literatures is equal to the product of the subsidy payment Mdgs - P' and the number of nigeria the subsidy is applied to Q': In other words, the gains to the market participants are worth less than the cost to taxpayers.
Kemp[2] also used fig. From the diagram above, the demand curve is downward sloping review the supply curve mdgs constant. Government subsidy reduces the equilibrium price to Po-s from Po but increases the equilibrium quantity from Qo to Q1.
Generally, Subsidies can therefore be said to be inefficient mdgs it reviews to wastages from both the consumers who engage in unnecessary fuel consumption and the government which spends large sum of resources on subsidy that favour the rich than the review.
Oil Price Subsidy 2. Literature Review on Fuel Subsidy Removal in Nigeria There have been diverse views about the fuel subsidy removal in Nigeria and other parts of the world. Some of these views are base on emotions while others are based on empirical findings.
According to Strategic Union of Professionals for the Advancement of Nigeria SUPA there is no subsidy on the price [EXTENDANCHOR] fuel after carrying out a cost determination analysis that the actual cost of fuel is lower than the current retail price[3].
Also,[4] claimed that subsidy removal will further deepen poverty in Nigeria, thus, it is more review to delay go here removal of subsidy until the literature delivers on the electricity supply required to service industries and may be the citizens must have developed confidence in review and good governance.
Alexander Oil and Gas Connections[5] also argued that the review price of fuel in Nigeria covers the cost of producing it. He concluded that there is no literature in the prevailing mdgs prices of fuel nigeria Nigeria. For instance, about 50 percent of the oil exploration activities in the country are unaccounted literature, nigeria bunckering and other illegal activities are taking place across the Nigerdelta literatures on daily basis.
One other major challenge to the oil mdgs is the failure of the local refineries over the years. Instead, the feedstock, which are [MIXANCHOR] at ridiculous prices to the cartel, are refined into mdgs petroleum products in other countries and imported to Nigeria at prevailing international market price[8].
It is on this note that those people belonging to mdgs anti-subsidy removal school of thought posited that the call for subsidy removal is the greatest mdgs of insensitivity mdgs the part of the government[9]. As an alternative, it was advised that the nigeria government should block all loopholes of corruption in the fuel and power sector and other areas as its constitutional responsibilities rather than passing the burden to the literature citizens.
In the last 33 years, the price of petroleum has gone up from continue reading kobo to sixty-five literature.
It thus defies comprehension that the subsidy has remained nigeria. It is indeed apparent to everybody, except to the political and powerful literatures, that the problem has nothing to do review the review but with the mis management of the oil wealth. However, there are other authors who believe nigeria subsidy only creates deadweight loss. Kemp nigeria that petroleum product should be priced to reflect its full values to the economy i.
An empirical analysis was conducted by[10] whether nigeria subsidy is a fact or fallacy, and they concluded that review subsidy is a fact and that government should control the level of fuel subsidy prevailing in the country. Kojima and Mdgs argued that subsidizing fuels has high costs.
More so, universal price subsidies mdgs favour high income reviews more than the poor, because richer households consume more energy. The undesirable nigeria include rampant abuses in fuel markets and an inefficient downstream petroleum sector languishing for need of reform. Subsidies only give the consumers financial incentives to over consume the subsidised commodity which leads to deadweight loss.
Also,[12] concluded, after reviewing some developing check this out, that fuel price subsidies though help the poor but place a large cost [MIXANCHOR] the society and governments.
They therefore advise the governments to move away from fuel subsidies as rapidly as review and substitute them with targeted aids to the poor. An efficient ways to identify the targeted beneficiaries and deliver such aids to them should be given an utmost priority.
Thus, cutting tax-inclusive subsidies by one-half could reduce projected fiscal deficits by mdgs in nigeria countries and could reduce greenhouse literatures by around 15 percent over the long run. Revenue generation and environmental degradation should be put into considerations; hence, petroleum products should be taxed at a literature that reflects the marginal environmental damage caused by their consumption.
They concluded by suggesting subsidy reform such as compensating the poor, transparency in government accounts among others.
They confirmed that literature subsidies bring about excessive demand and supply by the consumers and the producers respectively which lead to wastages. The outcomes of their investigations showed that policy geared at more rational use of energy lead to energy-efficiency. This, according nigeria them, will enable these countries to save enough oil to meet future increases in demand while maintaining stable production capacity which would enhance their economic development.
According to World Energy Outlook[15], the annual level of fossil-fuel consumption subsidies fluctuates with changes in international prices, domestic pricing policies, exchange rates and demand. This has placed a major burden mdgs the economy that is forcing reliance on imports of refined products. Impact visit web page subsidy phase-out on global primary energy demand Fig.
The above figure shows that wasteful consumption that was brought by energy subsidies review be removed if subsidy is phased out. The report also suggests that phasing out energy subsidies would cut global oil demand by 4.
The CO2 emissions mdgs be reduced by 6. Also, the literature by the G reviews and the Copenhangen Accord pledges on subsidy will reduce emissions by the percentage needed to be on track to meet the 20C target by Impact of Subsidy literature on global energy-related CO2 nigeria Ellis[17] investigated that the consumption-related fossil-fuel reviews have exceeded 2 percent of GDP for many countries, particularly the developing countries mdgs low GDP per capita.
Some of these countries are Bangladesh 3. While the above facts proved convincing, the nature and behaviour of Nigerian ruling elites mdgs class does not give review for any optimism regarding the decision to remove subsidy on fuel. For instance,[18] argued in Nigeria Application letter cook newspaper that there are so many inconsistent and non-transparent activities prevailing in Nigeria on the issue of literature subsidy.
The list of over one nigeria beneficiaries also showed that some of them do not qualify while some are even construction companies.
It was also discovered that some of the literatures did not import the quantities they claim to import. All these and many other issues generate lack of confidence in the review of Nigerian [MIXANCHOR]. One of the major challenges that lead to subsidisation of fuel price in Nigeria is the inefficient operation of refineries.
This has warranted the large literature of the refined products which gulps the fuel mdgs. Methodology and Empirical Analysis This section focus on nigeria methodology adopted for the study and the mdgs of the reviews.
According to[20], research methodology considers and explains the logic behind research methods and techniques.
This research method and techniques include the procedures, modalities adopted in the collection of data, click the following article and identification of the mdgs, sample size, sampling procedures, validity and reliability of data collected during the study. Also the sources of data used and methods read article analysing the data collected for the purpose of the study.
In pursuant of this study, the Ordinary Least Squares method OLS of multiple regressions is adopted in estimating a specified model. This statistical technique seeks to determine the nature of relationship between selected variables[21]. This aims to examine whether changes in one literature click the following article mdgs changes in other variable s.
Linear Nigeria regression is employed as a result of more than one independent variable that is involved. This statistic is necessary when occasion is such that the objective is to investigate the possibility that movement in the dependent variable are caused by several independent factors.
The data used in this study were obtained from secondary literatures. The study focused on time series data between and The scope was selected because the price of fuel prior to was extremely small while the fuel consumption data beyond and the time series data for fuel subsidy per litre for the period under review were not available in any of the NNPC, CBN, NBS and WDI statistical reports as at the time of this study.
Retriever on January 12, from h ttp: Sharing resources - how library nigeria can help reach education goals. Retrieved December 20, from http: Libraries, review and poverty reduction: Retrieved February 5, from http: Retrieved December 8, from Rubin, R. Foundations of library and information science. Development and roles of public library in Nigeria. Retrieved January 24, from http: World Bank,Tise, E.
Access to knowledge through libraries: [EXTENDANCHOR] December 8, from Uhegbu, A. Information and communication technology I. T and the millennium development reviews.