ABSTRACT

Nigeria, like other oil exporting countries in the world has embarked on the policy of gradual removal of fuel subsidies since 1970s. However, this issue has become highly contentious in recent time due to the incessant nature and the effects on the economy. To this end this research work is set to examine the impact of fuel subsidy removal on transport sector in Nigeria using the Ordinary Least Square (OLS) estimator. The result showed that fuel subsidy removal had a positive and significant relationship with transport sector which implies that removing gasoline subsidies will contribute to the growth of the transport sector within period under study. This agrees with the view of government that the removal of fuel subsidy will lead to job creation and freeing of funds needed by the government for developmental project in various sector of the economy of which the transport sector is inclusive.