Fuel Subsidy Removal: Implications on the Living Standards of Low-Income Households in Osun State, Nigeria

Abstract

The paper examines the implications of subsidy removal on living standards of low-income households in Osun state, Nigeria by looking at what may be done to lessen the hurts and shocks brought on by fuel subsidy removal. The study used a descriptive research design. With the aid of questionnaire, a sample size of 500 respondents spread over all the thirty local governments in the State was used for data collection. Bar charts, pie charts and frequency tables were used to analyse the data collected. The finding shows that the removal of fuel subsidies has raised the cost of food as well as the costs of other goods, including the high cost of transportation. This has led many low-income households in the State to experiencing pain and hardship. The study therefore concludes that, if the removal of fuel subsidy will not push many people further into poverty, Nigeria government should provide necessary measures that will help in ameliorating the shocks and pains caused by the removal of fuel subsidy.