A flip over from the economy is the issue of fuel subsidy removal, which many Nigerians felt very touchybout. Nigerians are disappointed that despite their disapproval of the plan, government has continued topromote it. There has been vociferous undaunted in trying to convince Nigerians to buy into the subsidyremoval is the claim that the economy may crash if the subsidy as not removed. From the time Jonathan’sgovernment brought up the issue of removing what it called subsidy on petroleum products after the 2011elections, feathers had been ruffled both in the National Assembly, among civil society groups, theopposition political parties, professional associations, and many other interests in the polity. Proponentsof the subsidy posit that the subsidy has to go because we need the money to rebuild the economy.Opponents of the policy argued that there is nothing like subsidy ever existed in Nigeria, and that hat wassurreptitiously being promoted by government as removal of subsidy was increase of petrol price under adeceptive guise. The paper, therefore, examines the implications of the subsidy removal on the economyin general and the populace in particular. To achieve this objective, the first section of the paper exploresconceptual issues of subsidy and deregulation. The next section examines the theoretical framework ofanalysis upon which the conceptual issues are based. Neo-liberalism will be used in anchoring our thesis.The third segment discusses the implications of the policy on the economy and the Nigerian masses. Thefinal section offers recommendations and concludes the paper.Keywords: subsidy, deregulation, international economic relations, neo-liberalism, privatization, andindustrial action.