Assessing the Compensating and Equivalent Variations of Human Welfare Impact Resulting From Fuel Subsidy Removal in Southwest, Nigeria

The study assessed the compensating and equivalent variations in human welfare resulting from the removal of fuel subsidies in southwest Nigeria. The analysis reveals significant welfare implications, with indirect effects having a greater impact on household welfare than direct price changes. Policymakers must carefully examine both direct and indirect impacts to develop effective mitigation strategies to cushion the effects of fuel subsidy removal.