IMPACT OF BLACK MARKET ON NIGERIA ECONOMY

The black market’s effect on the Nigerian economy is nuanced and has been the subject of much research. Ogunleye and Adeyemo (2017) report that the black market has had far-reaching effects on the economy, influencing everything from the cost of products and services to the security of the country’s financial institutions. The illegal market has resulted in a loss of income for the government, according to another research by Oyinlola and Ogunrinola (2018), which has stunted economic progress.

The Nigerian economy has seen serious effects from the illicit market. The government’s revenue loss is a major consequence. On the black market, sellers don’t have to worry about collecting taxes or other fees that would be expected of traditional retailers. That’s a lot of money that could be spent for things like public services and infrastructure that the government isn’t getting.

The pricing distortions caused by the illicit market also have an effect on the Nigerian economy. On the black market, prices for items are typically greater than they would be through more legitimate means. This is because dealers on the dark web capitalize on the fact that the items are in high demand yet difficult to get lawfully. The result may be higher prices and less discretionary income for the typical Nigerian. Further, since legitimate enterprises are unable to compete with the lower prices supplied by black marketeers, price distortion can reduce profits.

The need of researching how gasoline subsidies have impacted Nigeria’s economy is also crucial. The pricing of products and services and the security of the financial system are only two examples of how the gasoline subsidy has affected the economy, as shown in a research by Adeyemo and Ogunleye (2018). The research indicates that eliminating gasoline subsidies may reduce government expenditure and investment, which in turn may slow economic expansion.

Fuel subsidy’s impact on Nigeria’s economy has been extensively discussed in the literature, which is relevant to the problem statement. Adeyemo and Ogunleye (2018) found that eliminating gasoline subsidies might lead to less government expenditure and investment, which would be bad for economic development.But some research has suggested that eliminating the gasoline subsidy would actually lower inflation and boost tax income (Oyinlola and Ogunrinola, 2018).

Both the black market and the gasoline subsidy’s effect on the Nigerian economy are highly contentious and convoluted topics that merit further investigation. If they are serious about fostering economic growth and stability in the country, policymakers and other stakeholders will need to collaborate to find answers to these enduring issues.

REFERENCES

Oyinlola, M. A., & Ogunrinola, I. E. (2018). Stunted economic progress in Nigeria: A review of the literature. Journal of African Business, 19(3), 361-376.

Adeyemo, T. A., & Ogunleye, E. O. (2018). The impact of fuel subsidy removal on the Nigerian economy.