FUEL SUBSIDY REMOVAL AND RAVAGING POVERTY IN NIGERIA
Abstract
ABSTRACT
The removal of fuel subsidy in Nigeria has remained one of the most controversial economic
policies in recent years, sparking widespread debates about its effects on the living conditions of
citizens. This study titled “Fuel Subsidy Removal and Ravaging Poverty in Nigeria” examines
the socio-economic consequences of the 2023 fuel subsidy removal on the Nigerian populace,
particularly its impact on poverty, inflation, transportation costs, and overall household welfare.
The research adopts a descriptive survey design, using both primary and secondary data to
analyze the relationship between fuel subsidy withdrawal and the rising poverty rate in the
country. Findings from the study reveal that while the policy was intended to promote fiscal
stability, encourage investment, and reduce government expenditure, it has simultaneously led to
increased cost of living, reduced purchasing power, and greater hardship among low-income
earners. The research concludes that although subsidy removal may offer long-term economic
benefits, the short-term effects have deepened poverty and widened the inequality gap in Nigeria.
It recommends that government should implement effective palliative measures, invest in public
transportation, and create social welfare programs to cushion the adverse effects of the policy
on the poor and vulnerable populations.
Keywords: Fuel Subsidy, Poverty, Economic Policy, Inflation, Nigeria, Welfare.
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