EFFECT OF FUEL SUBSIDY REMOVAL ON RURAL HOUSEHOLD COST OF LIVING IN SOBA AND KUBAU LOCAL GOVERNMENT AREAS OF KADUNA STATE

Fuel subsidy removal in Nigeria by the present administration came with a lot of economic, social and political implications. The economic implications of the removal of the subsidy on Petrol Motor Spirit (PMS) include high cost of food items among others. Increase in cost of food items amidst high rate of poverty, unemployment and inequality has the tendencies to subject many households to degrading economic conditions. The main objective of this study is to examine the effects of fuel subsidy removal on household cost of living with special reference to cost of food items. The total population of the study comprised of total population of Soba and Kubau Local Governments which stands at 844,900. Therefore, the sample size for the study is 384 which was determined by the Krejcie and Morgan (1970) table for the determination of sample size. The cluster sampling method was used to select respondents for the study in both local governments under study. A total of 275 questionnaires were returned and duly completed. Inferential statistic tool was used to carryout analysis and test of regression at 0.5 level of significance. The SPSS 2022 version was adopted for the sake of data analysis. The study revealed that the subsidy removal has had significant effect on the livelihood of the rural household habitant particularly their ability to feed regularly as a result of skyrocketing of the prices of staple food items and other household essentials. The P-value of 0.000 which is less than the significant level grossly showed that cost of food items has been affected by the removal of fuel subsidy. The study recommends that government should ensure food security by providing for excessive supply to overpower the demand and equally ensure that palliatives of food items are specifically meant for rural household because majority of them are dependent on daily hustle and farming which has become difficult as a result of removal of fuel subsidy.