Annmarie Nkem Okoli (PhD)


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.


Fuel Subsidy Removal, Socioeconomic Implications, Standard of Living, Abia State.

Full Text:



Agbaeze, E.K. & Ukoha, K. (2018). Oil a blessing or a curse: The Nigerian experience. European Journal of Social Sciences, 56(3), 262-270.

Ahmed, I. & Olugbenga, A.V. (2023).Application of petrol subsidy funds to address the problems of universal basic education for sustainable development in Nigeria. Web of Scholars: Multidimensional Research Journal, 2(1), 1-9.

Bagirov, M .& Mateus, C. (2019). Oil prices, stock markets and firm performance: Evidence from Europe. International Review of Economics & Finance, 61, 270-288.

Coady, D.P., Flamini, V. & Sears, L. (2015). The unequal benefits of fuel subsidies revisited: Evidence for developing countries. International Monetary Fund.

Coady, D., Parry, I., Sears, L.& Shang, B. (2017). How large are global fossil fuel subsidies? World development, 91, 11-27.

Couharde, C. & Mouhoud, S. (2020). Fossil fuel subsidies, income inequality, and poverty: Evidence from developing countries. Journal of Economic Surveys, 34(5), 981-1006.

Dennis, A. (2016). Household welfare implications of fossil fuel subsidy reforms in developing countries. Energy Policy, 96, 597-606.

Gidigbi, M.O. & Bello, K.M. (2020). Petroleum subsidy reduction and poverty in Nigeria: A choice between maintaining the subsidy or providing infrastructural services equivalent to the deadweight loss. Asian Development Perspectives (ADP), 11(1), 70-81.

Harring, N., Jönsson, E., Matti, S., Mundaca, G. & Jagers, S.C. (2023).Cross-national analysis of attitudes towards fossil fuel subsidy removal. Nature Climate Change, 13(3), 244-249.

Harun, M., Mat, S.H.C., Fadzim, W.R., Khan, S.J.M. & Noor, M.S.Z. (2018). The effects of fuel subsidy removal on input costs of productions: Leontief input-output price model. International Journal of Supply Chain Management, 7(5), 529-534.

Houeland, C. (2022). The social contract and industrial citizenship: Nigerian trade unions’ role in the recurring fuel subsidy protests. Africa, 92(5), 860-879.

McCulloch, N., Moerenhout, T. & Yang, J. (2021). Fuel subsidy reform and the social contract in Nigeria: A micro-economic analysis. Energy policy, 156, 112-116.

Mohammed, A.B., Ahmed, F.F. & Adedeji, A.N. (2020). Assessment of Impact of Fuel Subsidy Removal on Socio-economic Characteristics: A Survey of Households in Maiduguri, Borno State, Nigeria. Journal of Business and Economic Development, 5(1), 10-14.

Okongwu, C.J. & Imoisi, S.E. (2022). Removal of petrol subsidy: Legal Implications for the Nigerian Economy. NnamdiAzikiwe University Journal of International Law and Jurisprudence, 13(2), 135-139.

Ovaga, O.H. & Okechukwu, M.E. (2022). Subsidy in the downstream oil sector and the fate of the masses in Nigeria. Kuwait Chapter of Arabian Journal of Business and Management Review, 1(6), 1-20.

Ozili, P.K. & Arun, T. (2023). Spillover of COVID-19: Impact on the Global Economy. In Managing inflation and supply chain disruptions in the global economy (pp. 41-61). IGI Global.

Parry, I., Black, M.S. & Vernon, N. (2021). Still not getting energy prices right: a global and country update of fossil fuel subsidies. International Monetary Fund.

Raji, A. (2018). Fuel subsidy removal and the lives of rural dwellers in Nigeria (Doctoral dissertation, Department of Sociology, Faculty of Social Sciences, University of Ilorin, Ilorin, Nigeria.

Sampedro, J., Arto, I. & González-Eguino, M. (2017). Implications of switching fossil fuel subsidies to solar: A case study for the European Union. Sustainability, 10(1), 50-52.

Shagali, A.A. & Yusuf, R. (2022). Political economy of fuel subsidy removal in Nigeria: Issues, challenges and the way forward. Zamfara Journal of Politics and Development, 3(3), 12-12.

Sheyin, A.O. (2018). The effects of subsidy removal on the escalation of political corruption in Nigeria.KIU Journal of Social Sciences, 4(3), 157-168.

Sweeney, S. (2020, January).Weaponizing the numbers: The hidden agenda behind fossil-fuel subsidy reform. In New Labor Forum, 29(1), 87-92. Sage CA: Los Angeles, CA: SAGE Publications.

Umeji, G. & Eleanya, E. (2021).Assessing the Impact of Fuel Subsidy Removal in Nigeria on the Poor in the COVID-19 Era. SERBD-International Journal of Multidisciplinary Sciences.


  • There are currently no refbacks.

Copyright (c) 2024 Annmarie Nkem Okoli (PhD)










ISSN (PRINT):    2682 - 6135

ISSN (ONLINE): 2682 - 6127





Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.