The Effect of Fuel Subsidy Removal on the Economic Activities in Niger State, Nigeria
Keywords:
Fuel subsidy, fuel removal subsidy, corruption, economic reconstructionAbstract
The study examines the effect of fuel subsidy removal on in Niger State, Nigeria. The main objective of the
study is to determine the effect of the subsidy removal on the livelihood of the people of Niger State and to
proffer solutions to the problems encountered as a result of the programme. The study adopted the theory
of the “Rentier state”. the central economic factor of an abundant reserve of natural resources remains the
constant element around which the definition is structured. The study adopted the survey research design
and obtained its data from primary and secondary sources. The primary data were obtained through a
structured questionnaire administered on two hundred (200) respondents in the targeted areas. Simple
ramdom sampling technique was used to administer the questionnaire to the respondents spread across the
Eleven Wards in Munya Local Government Area for a fair and equal representation. Data collected were
presented in tables and further analyzed, using the simple percentage to measure significance of data
collected. The findings revealed that majority of the respondents strongly agreed that the policy had led to
an increase in the prices of goods and services, making it clear that there is a consensus on the adverse
economic consequences of subsidy removal. It was revealed that hike in fuel pump prices along with
increases in the cost of food, farm inputs, rent and transport and the general cost of living despite the
government effort to cushion the effect of the subsidy removal. The study recommended that Nigerian
government should build more refineries through PPP while effort should also be made to ensure proper
maintenance, Government should create an enabling environment to engender private investors for the
purpose of improving the local refining capacity, Government should also provide palliatives to the masses
and there should be transparency and accountability in the sharing of these paliative.
