ABSTRACT
Nigeria is among the world’s leading oil producers and suffers from a unique energy crisis that is sabotaging its economy. Refineries that supply fuel and other petroleum products to the people have been deliberately crashed, resulting in the exportation of crude oil and the importation of refined petroleum products. This phenomenon necessitated the subsidisation of fuel to make it affordable for ordinary citizens. The country spent over N15 trillion (US$34,443,168,000.00) in fuel subsidies between 2009 and 2021 and is expected to spend about N6.7 trillion (US$15,384,615,040.00) in 2022 and the first two quarters of 2023 alone. It is alleged that the fuel subsidy system encourages corruption on a large scale by the ruling class and their cronies. This chapter critically examines how fuel subsidies driven by the dilapidated and malfunctioning refineries are destroying the Nigerian economy. The study used a qualitative approach. Data came from documented sources. The data obtained was analysed and discussed using content analysis. This chapter contributes to knowledge and fills the existing gap by examining the corruption and economic impact associated with the huge budget provided from fuel subsidy that should have filled the infrastructure gaps in the country or even invested in productive economic activities that appeal to the restless youth to prevent violence and crime. Practical policy implications are derived from the study by offering alternative suggestions on how to avert economic sabotage and put the Nigerian economy back on the path of productivity and prudence.
