FUEL SUBSIDY REMOVAL: THE SOCIO-ECONOMIC IMPLICATIONS ON THE STANDARD OF LIVING IN ABIA STATE, NIGERIA

Abstract

Fuel subsidy removal in Nigeria has generated substantial discourse surrounding its socio-economic impact on the standard of living. This critical shift has prompted a multifaceted evaluation of the implications for the populace, including potential changes in purchasing power, transportation costs and overall welfare. This study assessed the socio-economic implication of fuel subsidy removal on the standard of living in Abia State, with a focus on Aba Metropolis. The study was guided by three research objectives and anchored on the conflict theory. The cross-sectional research design was adopted for the study and its population comprised residents of Aba Metropolis from which a sample of five hundred (500) respondents was drawn using the quota sampling technique. While 500 copies of structured questionnaire were administered, 495 were appropriately filled out, retrieved and analysed using frequency distribution tables, percentages and arithmetic mean. The analysis of data revealed that fuel subsidy removal has facilitated a significant increase in transportation costs and the prices of goods, and has negatively impacted the overall well-being of people in Aba Metropolis. Based on the findings, it was recommended that the government should introduce targeted subsidy programmes for essential commodities and public transportation, focusing on vulnerable populations, to alleviate the immediate burden on the cost of living and transportation for individuals and households, engaging in comprehensive policy reviews and consultations with stakeholders to develop effective strategies that balance the objectives of subsidy reform with the protection of the welfare and livelihoods of the residents in Aba Metropolis, among others.