Fuel Subsidy Withdrawal And Its Effects On Economic Conditions In Taraba State: A Study Of Cost Of Living
Samuel Ifeanyi Nwosu
Department of Banking and Finance, Falculty of Management Sciences, Federal University Wukari, Taraba State.
Abstract
The research delved into the effect of Fuel Subsidy Removal on Nigeria's Standard and Cost of Living, with Taraba State serving as a case study. Employing primary data sources, structured questionnaires, descriptive statistics, Simple Random Sample, and Taro Yamani form techniques to determine the sample size, frequency tables, percentages, and Pearson Chi-square for data analysis and hypotheses evaluation. The Pearson Chi-square results across all analyses, with likelihood ratio values (ratio value of -39.10250 and P-value 0.0002 for H1; -142.9044 and P-value of 0.0030 H2; -112.9064 and P-value is 0.0098 for H3; and -172.9074 and P-value 0.0027 for H4 ) and corresponding P-values, revealed a statistically significant-negative effect of Fuel Subsidy Removal on Nigeria's standard and cost of living. Conclusively, the findings reject the null hypotheses, which proposed that fuel subsidy removal would not significantly affect these aspects of livelihood. Instead, the alternate hypotheses, suggesting a substantial negative impact, were supported. Based on these conclusions, the government should address challenges arising from the subsidy removal, possibly through a substantial increase in the minimum wage to alleviate the adverse effects on civil servants' welfare. Poverty reduction measures should be prioritized to mitigate the negative impact of fuel subsidy removal, particularly in Taraba State and Nigeria at large. The study recommended that efforts should be made to stimulate industrial growth to generate employment opportunities. Reactivation of the subsidy reinvestment program is advised, directing savings from subsidy removal toward projects and initiatives that enhance the welfare of civil servants and citizens alike.