Policy Inconsistencies and the Economic Challenges in Nigeria: An Examination of Fuel Price Increase in the Tinubu Era

Abstract

This study examined "Policy Inconsistencies and the Economic Challenges faced by Nigerians: An Examination of Fuel Price Increase in the Tinubu Era." A descriptive and correlational research design was employed, which sourced data from 1500 respondents and secondary sources, including the National Bureau of Statistics (NBS), the Central Bank of Nigeria (CBN), and the World Bank. According to the research, substantial evidence links fuel price increases with some vital economic variables. Inflation increased in the country from 18.5% in 2022 to 30.5% in mid-2024, and the GDP increased from 3.1% in 2022 to 1.8% in mid-2024. Unemployment rose from 33.3 % to 40.2 %, while a hike in the general cost of goods and services was revealed to have risen by a staggering 60% and was most disastrous to low-income earners. Using regression analysis, it was established that a 1% increase in fuel prices resulted in an intermediate 0.43% increase in the inflation rate in 2023 and escalated to 0.5% by the middle of 2024. Public dissatisfaction was raised to the highest level as most respondents reported that their purchasing power had decreased by 90%. Findings include the negative implications of the fluctuating fuel prices in transportation costs, manufacturing expenses, and economic stability. These assertions corroborate other studies, advocating for using the scientific approach in policy formulation, supportive intervention in needy groups, and green energy programmes. Finally, the study found that to enhance economic security and social welfare in Nigeria, it is necessary to overcome the contradiction in the respective policies and follow the stabilisation of fund and renewable energy policies.