Deregulation Policy and Socio-Economic Development of Rural Dwellers in Akwa Ibom State: A Study of Fuel Subsidy Removal

The study examined the impact of deregulation policy, specifically fuel subsidy removal on the socio-economic development of rural dwellers in Akwa Ibom State, Nigeria. The removal of fuel subsidies, a key government policy aimed at reducing fiscal burdens and promoting market efficiency, has generated significant economic and social consequences, particularly for rural communities. Using a survey research approach, the study explored how increased fuel prices affect household income, transportation costs, access to education, healthcare services and small-scale businesses in rural areas of the State. It employed a survey research design and targeted a population of approximately 2680000 from which a sample of 400 respondents was drawn using the Taro Yamane formula. However, 347 was used to conduct the study. Data were analyzed using Pearson Product Moment Correlation Analysis. The findings revealed strong statistically significant negative correlations of -0.756 for household income, -.819 for transportation, .712 for access to education, -.562 for access to healthcare services and -0.961 for small-scale businesses. These results indicated that fuel subsidy removal led to increased transportation costs; diminished household incomes and severely constrained the performance of small-scale businesses in rural Akwa Ibom State. Based on the findings it was recommended that the Akwa Ibom State Government should implement the new minimum wage of 77,000 naira for rural civil servants to help stabilize family budgets and improve purchasing power; the Akwa Ibom State Government should launch a free rural transportation scheme using state-owned buses to mitigate increased travel costs and ensure affordable mobility for rural residents; the Akwa Ibom State Government should provide subsidized or free bus services for students and school staff, thereby reducing commute times and improving access to educational facilities amongst other recommendations.