Assessing the Long-Term Socio-Economic Impact of Fuel Subsidy Removal on Households Living Standards in Adamawa State, Nigeria: An Empirical Analysis

The removal of fuel subsidies in Nigeria under the current administration has caused a thoughtful shift with extensive long-term effects across employment, income over a period of time, business, daily life, healthcare, and education. Thus, this study is to assess the long-term socio-economic impact of fuel subsidy removal on households’ living standards in Adamawa State, Nigeria: an empirical analysis. The study covered three (3) Adamawa State Senatorial Zones: Southern Zone, Central Zone, and Northern Zone, with two (2) local government areas from each: Demsa and Numan (Southern), Yola North and Yola South (Central), and Mubi North and Mubi South (Northern). The objective of the study was to evaluate the long-term socioeconomic impact after fuel subsidy removal. A total of 400 respondents were interviewed through the use of a structured questionnaire. The study was anchored on the Economic Theory of Subsidy and Welfare Theory by Pigou in 1920. The result shows that employment status, income prospects, entrepreneurial opportunities, education, skill development, and lifestyle changes are affected by subsidy removal in the long term, and based on this conclusion, the following recommendations were made, among others: the government should target the social safety net (SSN), such as cash transfers of fund subsidies, to assist vulnerable households.