AN EMPIRICAL ANALYSIS OF THE IMMEDIATE SOCIO-ECONOMIC IMPACT OF FUEL SUBSIDY REMOVAL ON HOUSEHOLDS’ LIVING STANDARD IN ADAMAWA STATE-NIGERIA
Published 2024-01-03
Keywords
- Fuel Subsidy Removal,
- Socioeconomic characteristics,
- Households,
- Living Standard,
- Analysis
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Copyright (c) 2024 American Research Journal of Contemporary Issues
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Abstract
The removal of fuel subsidies has led to a looming crisis of fuel scarcity, generating widespread fear and anxiety among millions of Nigerian citizens about the potential impact on their daily lives. Thus, this study examines an empirical analysis of the socio-economic impact of fuel subsidy removal on households’ living standard in Adamawa State-Nigeria. The study covered six (6) local government areas (LGAs) in three (3) Senatorial Zones: Southern Senatorial Zone (Numan and Demsa), Central Senatorial Zone (Yola North and Yola South) and Northern Senatorial Zone (Mubi North and Mubi South), the objective of the study is to evaluate the immediate socioeconomic consequences of fuel subsidy removal on households in Adamawa State. Four hundred (400) respondents were interviewed, the demographic age of the respondents between 35-44 years revealed that 54.50% were active population. The households total monthly income before fuel subsidy removal fall between the range of N100,001-N150,000 of (27.25%) with mean and standard deviation of N124,900 (N68,417,413) and households total monthly income after fuel subsidy removal fall between the range of N100,001-150,000 of (28.25%) with mean and standard deviation (N121,662 (N70,703.047). The source of income of the respondents varies and the business with highest respondents 293 (73.25%), the level of household monthly expenditure after fuel subsidy removal most of the respondents are of the opinion of moderate. Survey data were collected and analysed using descriptive statistics. The study was anchored on the income and substitution effects theory. Based on the findings of the study, the following recommendations were made; first, policymakers should implement tailored social support programs, considering factors such as gender, marital status, and education, to assist vulnerable groups facing economic hardships. Second, measures should be taken to enhance access to essential services, such as healthcare and education, addressing concerns about affordability and availability. Lastly, income support and economic diversification initiatives are recommended to mitigate the immediate economic impact on households and encourage resilience in the aftermath of subsidy removal.