EFFECTS OF SUBSIDY REMOVAL ON AKOKO SOUTH WEST L.G.A OF ONDO STATE.

ABSTRACT This study investigates the impact of fuel subsidy removal on food prices, household consumption, and rural household responses in Akoko Southwest Local Government Area, Ondo State, Nigeria. Using descriptive statistics and chi-square tests, data were collected from 200 respondents across Akungba, Oka, and Supare communities through structured questionnaires. Findings reveal high awareness (89.5%) of the subsidy removal policy, with 51.5% opposing it. The removal significantly increased food prices (77%), driven by higher transportation (96.5%) and production costs (49.3%), leading to reduced household consumption, with 73.1% of respondents unable to afford the same food quantities and 52% reporting a significant decline in living standards. Rural households cope by purchasing smaller quantities (32.8%), reducing meals (18.9%), or cutting spending on essentials (81.6%). The chi-square test (p = 0.001) confirms a significant relationship between subsidy removal and food price increases. These findings highlight the socio-economic challenges faced by low-income rural communities, exacerbating food insecurity and economic vulnerability. The study recommends policy interventions, including job creation, agricultural support through subsidized inputs, minimum wage reviews, targeted welfare programs, and infrastructural investments to stabilize food prices and enhance household welfare.