Abstract
Subsidy has been one of the means of trickling economic effect down to reach majority adopted by many countries, including Nigeria. Recently, in Nigeria, subsidy on petroleum was removed which has led to a great macro-based debates. However, a study on such effect on individual might better provide important information on the impact of the policy, especially the impact on wellbeing of the poor. Thus, this study assessed the impact of fuel subsidy removal on the socioeconomic characteristics of households in Maiduguri metropolis, Borno state, Nigeria. Survey data were collected and analysed using descriptive statistics and simple regression method. Result on socioeconomic characteristics revealed that about 70.4% of respondents in the study area were male, about 61.3% were married, 41.5% fall within the ages of 30-39 years. Besides, 50.7% had tertiary education, 52.1% were civil servants and about 34.5% have income level ranges between ₦40,000 - ₦59,999 monthly. It was also revealed that 56.3% of the respondents had 8 – 10 family members, while 57.7% of them have 1 – 5 dependents. On the other, the inferential statistic result revealed that the households’ characteristics variable were positively related to fuel subsidy removal, significant at 1%, except households’ age. For sustainability, attention should be focused on workers’ wages and salaries increase, family planning and transportation costs reduction as these may alleviate hardship of fuel subsidy removal on low-income earners in Nigeria.
Highlights
Subsidy has been one of the means of tricking economic effect down to reach majority adopted by many governments
The socioeconomic characteristics showed that about 70.4% of respondents in the study area were male, about 61.3% were married, 41.5% fall within the ages of 30-39 years
Results of the descriptive analysis show that 76% of the respondents agreed that fuel subsidy removal have decreased their level of income, 71.1% agree that it has decrease their savings
Summary
Subsidy has been one of the means of tricking economic effect down to reach majority adopted by many governments. The SIP is basically designed to mitigate the effects of fuel subsidy removal and accelerate economic growth through investments in critically needed infrastructures as well as social services such as education, health care services, job creation, and vocational training In spite this initiative, the living condition of people appears not improve as prices of goods and services are considerably high which possibly as a result of removal of fuel subsidy. Borno is classified to have low economic status in the country as mentioned above, it shares border with other three less-economic privileged countries: Chad, Cameroon and Niger; where foreign migrants come in search for employment and better life As such removal of subsidy may increase the costs of basic living standards, a key factor that might have be the cause of high poverty rate in the state. This study intends to shed comprehensive light on the impact of fuel subsidy removal on living standard of households in Borno state, using Maiduguri for analysis
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
