Re-investment of Subsidy Removal Funds and Improvement of Employment Generation in Nigeria.

Abstract

This study investigated the Re-investment of Subsidy Removal Funds and Improvement of Employment Generation in Nigeria. The oil industry is the only thing on which Nigeria's economy depends. This reliance on oil is detrimental to the nation because, in the event that it runs out, the Nigerian economy will undoubtedly crash. It is instructive that Nigeria's successive governments have prioritized the elimination of fuel subsidies and an increase in fuel prices as a way to generate more money for development initiatives. The government makes a promise of abundant life for all citizens prior to every increase in the price of fuel and then makes a list of projects and programs into which the savings will be invested. The specific question of the study is has the reinvestment of the subsidy funds enhanced employment generation in Nigeria? The study was based on the following hypotheses: the reinvestment of the subsidy funds enhanced employment generation in Nigeria. The study adopted the qualitative and quantitative methods of data collection. Data obtained through the questionnaire was supplemented with secondary data. Frequency tables, simple percentages and analytic induction served as techniques for data analysis; while the Marxian theory of the state served as the theoretical framework for analysis. The findings indicate that the subsidy reinvestment and empowerment programme has not enhanced employment generation in Nigeria. The study, therefore, recommended among others, that the government should design and implement a clear strategy for the utilization of the pool of funds from subsidy removal so as to have a clear indication for measuring the employment impact of SURE-P.