Evaluation of fuel subsidy removal policy on air quality: A case study on Federal Capital Territory, Abuja, Nigeria

Abstract

There is a great deal of optimism that eliminating subsidies for fossil fuels will help to slow down climate change by discouraging the use of inefficient energy sources and leveling the playing field for renewable energy. This study aims to assess the effect of the fuel (Premium Motor Spirit) subsidy removal policy on air quality in the Federal Capital Territory (FCT), Abuja, Nigeria. Remote sensing with Google Earth Engine were employed to achieve the aim of this study. Data was collected two months before subsidy removal (April–May 2023) and after the ratification of the fuel subsidy removal policy (June–July 2023). Prior to the subsidy removal, the maximum and minimum concentration values of CO ranged from 0.0486 - 0.0415 mol/m² respectively which decreased to 0.0395 - 0.0333 mol/m2 after subsidy removal. The maximum and minimum concentration values for NO² ranged from 0.000125 - 0.0000597 mol/m², which decreased to 0.0000838 - 0.000051 mol/m² respectively. The maximum and minimum concentration values of aerosols ranged from 0.482 - 0.0456, which also decreased to -0.256 - (-0.728) respectively. A paired sample t-test revealed a statistically significant (p<0.05) decrease in CO and aerosols (p=0.033 and p=0.015, respectively). Furthermore, the study revealed that though NO₂ emissions decreased, this decline was not statistically significant (p= 0.368). The study findings suggests that the removal of fuel subsidy in May 2023 led to a significantly better air quality in the Federal Capital Territory, Abuja. Using cleaner energy sources, public transport, and imposing tariffs on vehicles that are no longer safe for the road are some of the recommendations provided by this research.