Volume 5, Issue 1, March 2020, Page: 10-20
Assessment of Impact of Fuel Subsidy Removal on Socio-economic Characteristics: A Survey of Households in Maiduguri, Borno State, Nigeria
Abdulkadir Baba Mohammed, Department of Economics, Faculty of Social Sciences, University of Maiduguri, Maiduguri, Nigeria
Funmilola Fausat Ahmed, Department of Economics, Faculty of Social Sciences, University of Maiduguri, Maiduguri, Nigeria
Abdulkabir Niran Adedeji, Department of Economics, Faculty of Social Sciences, University of Maiduguri, Maiduguri, Nigeria
Received: Dec. 27, 2019;       Accepted: Jan. 27, 2020;       Published: Feb. 11, 2020
DOI: 10.11648/j.jbed.20200501.12      View  14      Downloads  13
Subsidy has been one of the means of trickling economic effect down to reach majority adopted by many countries, including Nigeria. Recently, in Nigeria, subsidy on petroleum was removed which has led to a great macro-based debates. However, a study on such effect on individual might better provide important information on the impact of the policy, especially the impact on wellbeing of the poor. Thus, this study assessed the impact of fuel subsidy removal on the socioeconomic characteristics of households in Maiduguri metropolis, Borno state, Nigeria. Survey data were collected and analysed using descriptive statistics and simple regression method. Result on socioeconomic characteristics revealed that about 70.4% of respondents in the study area were male, about 61.3% were married, 41.5% fall within the ages of 30-39 years. Besides, 50.7% had tertiary education, 52.1% were civil servants and about 34.5% have income level ranges between ₦40,000 - ₦59,999 monthly. It was also revealed that 56.3% of the respondents had 8 – 10 family members, while 57.7% of them have 1 – 5 dependents. On the other, the inferential statistic result revealed that the households’ characteristics variable were positively related to fuel subsidy removal, significant at 1%, except households’ age. For sustainability, attention should be focused on workers’ wages and salaries increase, family planning and transportation costs reduction as these may alleviate hardship of fuel subsidy removal on low-income earners in Nigeria.
Fuel Subsidy Removal, Socioeconomic Development, Wellbeing, Sustainability
To cite this article
Abdulkadir Baba Mohammed, Funmilola Fausat Ahmed, Abdulkabir Niran Adedeji, Assessment of Impact of Fuel Subsidy Removal on Socio-economic Characteristics: A Survey of Households in Maiduguri, Borno State, Nigeria, Journal of Business and Economic Development. Vol. 5, No. 1, 2020, pp. 10-20. doi: 10.11648/j.jbed.20200501.12
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Adebiyi, O. (2011). Fuel Subsidy: The True Story: Csp. Africa 23 Next. Available Online At: Http://234Next.Com/Csp/Cms/Sites/Next/Home/5764 67-1822/ (Retrieved 19 March 2015).
Abang, I. Compensation Mechanisms for Fuel Subsidy Removal in Nigeria. International Institute for Sustainable Development 2016.
Adeyemi, O. (2011). Socioeconomic Characteristics Influencing Farm Household Participation in Gandu Local Government Area of Katsina State: Nigeria.
Ajayi, O. (2008). Assessment of Utilalisation of Energy Resources in Nigeria Energy Policy; 37: 750-753.
Akande, L. (2017). Social Intervention Programmes- Premium Times Nigeria: http://www.premiumtimesng.com. Retrieved 14 September, 2017.
Amaza, P., Abdoulaye, T., Kwaghe, P. & Tegbasu A. (2009). Changes in Household Food Security and Poverty Status in PROSAB Area of Southern Borno State: Nigeria. Pp 6.
Arze, G. (2012). The unequal Benefits of Fuel Subsidies: A Review of Evidence of Developing Countries. 40 (3): 31.
Bashir, D. (2014). The Economic Implication of Fuel Subsidy Removal in Nigeria. https://kkgpublications.com. Retrieved 27 July, 2019.
Centre for Public Policy Alternatives (2012). Fuel Subsidy: A Lesson for Nigeria. Geneva: Centre for Public Policy Alternatives. Pp. 22.
El- said, (2006). Regional Economic Outlook, Sub-Saharan Africa. www.article.sapab.org.com. Retrieved 22 November, 2016.
Eidis, D. (2012) Livelihood Connect: www.eldis.org/index.cfm. Retrieved 5 September, 2017.
Eyiuche, A. C. (2012). The Socio-Economic Implication of the Fuel Subsidy Removal. Ibadan: Abok Publishers.
Hope, F. & Sigh, B. (1995). Energy Price Increases in Developing Countries. Case Study of Gambia and Ghana. 3 (5): 32.
Iba, L. (2009). “Fuel Crisis: Will deregulation roll away all our problems?”, Daily Sun, International Energy Agency (IEA). October 5, (1999). 3 (39). World Energy Outlook 1999: Looking at Energy Subsidies –Getting the Prices Right. International Energy Agency: Paris.
Ijaiyi, G. T. (2007). “Privatization and Commercialization of Public Enterprises in Nigeria” in Institute Working Paper, 3 (1): 19.
Junk, V. W., Junk, W. S., & Jones, J. C. (2002). "Impacts of Energy Audits on Home Energy Consumption," Journal of Consumer Studies and Home Economics, (11): 2 21-23.
Keeley, S. (2001). The potential of Using Sustainable Livelihood Approaches in Poverty Reduction strategies. www.fao.org/decrap. Retrieved 22 February, 2018.
Luis, C. (2012). Energy Supply for Sustainable Rural Livelihood, A Multi Criteria Decision-Support System. (44): 1. 79.
McGee, (2002). Participation in Poverty Reduction Strategies: A Synthesis of Experience with Participatory to Policy Design, Implementation and Monitory. Paper 109, Briton Institute of Development Studies.
Mefimisebi, T. (2013). Fundamentals of Cattle Marketing in Southwest, Nigeria: Analysing Market Intermediaries, Price formation and Yield Performance. (1): 2.
NBS: Public Statement on World Statistics Day 2015.
Netting, D. & Robert. (1993). Smallholders, Householders: farm families and the Ecology intensive (3): 7.
News agency of Nigeria (NAN) (2012) “Only full deregulation of downstream sector will end fuel scarcity”. http://www.vanguardngr.com/2012/11/.
Norton, L. & Foster, H. (2001). Tools for Sustainable Livelihood: Strategies for Change. www.fao.org/decrap. Retrieved 22 February, 2018.
Nkagu, R. (2012). Fuel Subsidies in Nigeria: an economic Necessity and a Political Dilemma. http//www.bookings.edu. Retrieved 4 March, 2016.
Ocheni, S. (2015). Impact of Fuel Price Increase on Nigerian Economy. Mediterranean journal of social sciences, Department of Accounting Kogi State University, Ayugba 6 (1).
Ojo, O. (2013). Effects of women’s socioeconomic characteristics on households fuel consumption in Domboa Local Government Borno state. 3 (1): 8.
Olawale, S. (2013). Political Economy of Phasing Out Fuel Subsidy in Nigeria, energy and power 1: (10).
Opayemi, A. (2015). Fuel Subsidy Reform and Environmental Quality in Nigeria. http://www.econjournals.com.index. Retrieved 15 July, 2015.
Oyodele, T. (2009) The Real Cost of Fuel Subsidy and Tax Implication. http://www.edufocus.com
Pasteur, C. (2001). A Sustainable Livelihoods Approaches at Different Levels. www.fao.org/decrap. Retrieved 22 February, 2018.
Regalema, F. (2000). Coping or Struggling? A Journey in to The Impact of HIV/AIDs in South Africa. https://www.researchget.net/publications
Remy, U. (2012). The Impact of Fuel Subsidy Removal on Socioeconomic Development. Journals of Economics, Commerce and Management. 1 (2).
Osagie, E. (2012). Evaluation of the Impact of Oil Subsidy Removal in South East Nigeria. https://www.slideshare.net/mobile.com. Retrieved 12 March, 2018.
Todaro. H. (2009). A General Equilibrium Analysis of Production Subsidy in Haris Todaro Developing Economy: An Application to India. Applied Economics, Taylor Francis journals, vol, 41 (21) https://ideas.respect.org.com. Retrieved 12 March, 2018.
Browse journals by subject