SUBSIDY REMOVAL ON ECONOMIC HARDSHIP IN KEFFI LOCAL GOVERNMENT AREA, NIGERIA

Abstract

The impact of subsidy removal on economic hardship in Keffi Local Government Area, Nigeria, has been a subject of considerable concern and debate. This study examined the consequences of removing subsidies on essential commodities, particularly fuel, and its subsequent effects on the economic well-being of the residents in Keffi local government Area of Nasarawa State, Nigeria. Through a combination of quantitative and qualitative research methods, including surveys, interviews, and economic data analysis, this study seeks to assess the direct and indirect repercussions of subsidy removal. The research focused on key indicators such as household income, inflation rates, consumer spending patterns, and overall quality of life. The findings of this study revealed among other things that; subsidy removal affecting household's monthly expenses; subsidy removal have significant consequences on the lives of its residents; current economic situation much worse compared to before the subsidy removalin Keffi Local Government Area, Nigeria. Furthermore, it was revealed that one of the immediate effects of subsidy removal is often inflation. When the cost of essential goods and services increases, it erodes the purchasing power of the population. This means that people may not be able to afford the same quantity of goods and services as before, leading to economic hardship. Among other things, the study therefore recommended that; government should implement targeted social safety net programs to protect vulnerable populations from the immediate effects of subsidy removal. This could include cash transfer programs, food assistance, and subsidized healthcare for low-income households. More so, government should encourage economic diversification within Keffi Local Government Area to reduce dependency on oil subsidies. Promote and support local entrepreneurship, agriculture, and small and medium-sized enterprises (SMEs) to create job opportunities and stimulate economic growth.