EFFECT OF FUEL SUBSIDY REMOVAL ON FAMILY WELLBEING IN GAMAWA LOCAL GOVERNMENT AREA
Abstract
ABSTRACT
This study examined the socio-economic implications of fuel subsidy removal on family wellbeing
in Gamawa Local Government Area (LGA), Bauchi State, Nigeria. The objectives of the study were
to identify the causes of fuel subsidy removal, assess its effects on access to basic needs such as
food, healthcare, and education, investigate coping strategies adopted by families, and evaluate
the broader socio-economic implications on household wellbeing. A survey research design was
employed, with data collected through structured questionnaires administered to 399 households,
of which 345 were retrieved and analyzed, representing an 86% response rate. Descriptive
statistics, including frequency, percentage, mean, and standard deviation, were used to present and
interpret findings. The results revealed that government fiscal constraints, corruption in the
subsidy system, and pressure from international financial institutions were perceived as the major
causes of subsidy removal. The analysis further showed that subsidy removal significantly affected
household access to food, healthcare, and education, with many families struggling to meet daily
needs. Coping strategies commonly adopted included reducing food consumption, withdrawing
children from private schools, increased reliance on public healthcare facilities, and engaging in
petty trading or additional income-generating activities. The socio-economic implications were
evident in heightened poverty, reduced savings, increased household indebtedness, and declining
overall wellbeing. The study concludes that while the removal of fuel subsidy may be aimed at
economic reforms and resource reallocation, it has imposed severe hardship on families in
Gamawa LGA, undermining household welfare and deepening socio-economic inequalities. It
recommends the implementation of robust social safety nets, targeted subsidies for vulnerable
groups, investments in public transportation, and policies that promote local economic
empowerment to cushion the negative effects of subsidy removal. This research contributes to the
broader discourse on subsidy reforms in Nigeria by providing empirical insights into their direct
impacts on household survival and wellbeing in rural communities.
Keywords: Fuel subsidy removal, household wellbeing, coping strategies, socio-economic
implications, Gamawa LGA, Bauchi State
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