FUEL SUBSIDY REMOVAL AND COST OF LIVING CRISIS IN NIGERIA: A POLICY REVIEW

Abstract

In Nigeria, the removal of fuel subsidies has sparked widespread protests and concerns about the impact on the cost of living. The subsidy served as a buffer, keeping fuel prices lower for consumers. Its removal has led to increased transportation costs, affecting the prices of goods and services, and subsequently, the overall standard of living. This study examined fuel subsidy removal and cost of living crisis in Nigeria: a policy review. The paper employed the used of primary and secondary data. The primary data was collected through a self-structured questionnaire; while, the secondary data were collected from print resources and online publications. The study employed descriptive statistics like frequency count and mean for analysis of the data. The findings showed that the economic ripple effects extend to consumer price indices and inflation rates, revealing a complex interplay between subsidy removal, oil price fluctuations, and other economic variables. The study recommends that policymakers should adopt comprehensive approaches to not only mitigate short-term inflation but also address broader economic dynamics. Effectively managing inflation, along with implementing policies to protect vulnerable segments of society, which will contribute to a more stable socio-economic environment.