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Fuel Subsidy Removal and Welfare of Residents in Niiger Delta Region of Nigeria

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  • Dr. Endurance Gabriel Udo

    (Department of Economics, School of Social Sciences, college of Education Afaha Nsit)

  • Ofonime Moses Akpan

    (Department of Economics, School of Social Sciences, college of Education Afaha Nsit)

Abstract

The removal of fuel subsidies in Nigeria on May 29, 2023, marked a pivotal economic policy shift, significantly impacting the Niger Delta, a region central to the nation’s oil production yet plagued by poverty and environmental degradation. This study investigates the socioeconomic consequences of the subsidy removal on the welfare of Niger Delta residents, with a focus on civil servants and pensioners across generational cohorts (Baby Boomers, Generation X, Generation Y, and Generation Z). Utilizing a descriptive survey research design, data from 800 households across four states (Bayelsa, Akwa Ibom, Delta, and Ondo) were analyzed to assess impacts on household purchasing power, access to essential services (healthcare, education, and transportation), and the role of advertising mediums in shaping awareness and coping strategies. Findings reveal a significant decline in welfare, with pensioners experiencing greater reductions in affordability and service access compared to civil servants, due to fixed incomes and rural challenges. Regression analysis confirms that subsidy removal negatively affects welfare, moderated by income and location, while qualitative insights highlight coping strategies like reduced spending among pensioners and income diversification among civil servants. Grounded in Compensating Variation Theory and Rational Choice Theory, the study underscores the need for targeted social safety nets, rural transportation subsidies, and transparent policy communication to mitigate adverse effects. These findings contribute to understanding region-specific impacts of economic reforms and provide a foundation for equitable policy interventions in the Niger Delta.

Suggested Citation

  • Dr. Endurance Gabriel Udo & Ofonime Moses Akpan, 2025. "Fuel Subsidy Removal and Welfare of Residents in Niiger Delta Region of Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 11-24, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:11-24
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    References listed on IDEAS

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    1. Pitt, Mark M., 1985. "Equity, externalities and energy subsidies The case of kerosine in Indonesia," Journal of Development Economics, Elsevier, vol. 17(3), pages 201-217, April.
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