IMPACT OF FUEL SUBSIDY REMOVAL ON THE PSYCHO-ECONOMIC ACTIVITIES OF LOW-INCOME EARNERS IN EKITI STATE

The removal of fuel subsidies in Nigeria has been a contentious policy decision with significant socio-economic and political implications. This study investigates the effects of fuel subsidy removal on the socio-political and economic status of residents in Ado-Ekiti Local Government Area, Ekiti State. Using a descriptive survey design, data were collected from 250 respondents through a structured questionnaire. The findings reveal that the removal of fuel subsidies has led to a sharp increase in the cost of living, affecting transportation expenses, business operations, and household purchasing power. The study also highlights the social consequences, including reduced access to essential services such as healthcare and education, as well as increased economic inequality. Politically, the policy has contributed to a decline in public trust in the government, with many residents expressing skepticism about the effective management of funds saved from subsidy removal. The study concludes that while the long-term economic benefits of subsidy removal are debated, its immediate impact has been largely negative for low-income households. Based on the findings, the study recommends targeted financial assistance, infrastructural investment, and enhanced government transparency to mitigate the adverse effects on affected communities.