SOCIO-ECONOMIC EFFECT OF FUEL SUBSIDY REMOVAL IN OREDO LOCAL GOVERNMENT AREA

Abstract

ABSTRACT This study examines the socio-economic effects of fuel subsidy removal in Oredo Local Government Area. For decades, fuel subsidy has been a key feature of Nigeria’s petroleum sector, aimed at reducing the cost of petroleum products and easing the financial burden on citizens. Its removal, however, has generated significant debate due to its wide-ranging implications for economic stability and public welfare. While existing studies have explored fuel subsidy policies in Nigeria, limited attention has been given to their specific impact on local communities and grassroots economic development. To address this gap, the study critically analyzes the socio-economic conditions of residents in Oredo following subsidy removal. It relies on secondary data drawn from academic literature, journals, newspapers, government publications, and relevant dissertations. Findings indicate that successive governments have implemented various subsidy reforms in response to fiscal pressures, global oil price fluctuations, and economic restructuring needs. However, subsidy removal has led to increased transportation costs, higher prices of goods and services, and greater economic hardship for many households. It also affects public perception of government policies and overall social welfare at the local level. The study concludes that although subsidy removal may be economically justified, its effectiveness depends on the adoption of transparent policies and robust social protection measures. It recommends that future reforms incorporate sustainable economic strategies, clear public communication, and targeted support for vulnerable populations.

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urn:uuid:b4904011-4010-4b6e-b907-ee25aa201478