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All Journal Publica: Jurnal Pemikiran Administrasi Negara Pen of Social Science
Kachalla Bura Lumami
Department of Public Administration, Yobe State University Damaturu Nigeria
Religion Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Social Sciences

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Effects of Fuel Subsidy Removal on Socioeconomic Status of the Inhabitants of Northeast Nigeria Usman Sambo; Kachalla Bura Lumami
Publica: Jurnal Pemikiran Administrasi Negara Vol. 17 No. 2 (2025): Publica
Publisher : Department of Public Administration

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15575/jpan.v17i2.51750

Abstract

Subsidising fuel and other essential commodities that are unaffordable for the poor and disadvantaged is a component of social security and welfare policies in many countries. However, these subsidies come at a significant cost, consuming a large portion of budgets intended for infrastructure development. This has sparked debates about the feasibility of maintaining subsidies or abolishing them. Nigeria, one of the largest oil-producing countries in the world, has subsidised fuel for many decades to ensure affordability. However, allegations of corruption and concerns about the opportunity costs of subsidising fuel have raised issues, while projections of severe hardship following subsidy removal continue to warn policymakers. This study therefore examines the implications of subsidy removal in 2023 on the socioeconomic status of residents in Northeast Nigeria. Data were collected through multi-level cluster sampling using structured questionnaires and in-depth informant interviews with unstructured questionnaires, in addition to consulting existing documents. The collected data were discussed, analysed, and interpreted using statistical tools in non-automated SPSS and qualitative interview discussions. The study found that subsidy removal caused severe suffering and unprecedented hardship for the inhabitants of the Northeast. Therefore, the study recommends, among other measures, that the government should revise its haphazard subsidy removal and intensify social security transfers to the poor.
Subsidy Shock and Social Vulnerability: Socioeconomic Effects of Fuel Subsidy Removal in Northern Nigeria Usman Sambo; Kachalla Bura Lumami
Pen of Social Science Vol. 2 No. 1 (2026): Pen of Social Science
Publisher : Pena Kreatif Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.67793/pss.v2i1.29

Abstract

The fuel subsidy had previously served as a silent form of social protection in Nigeria, shielding vulnerable groups from high living costs in a country where poverty is widespread and social welfare is lacking. The financial burden of subsidising fuel, combined with perceptions of poor performance, sustained ongoing debate about whether to remove the subsidies. In 2023, the Nigerian government abruptly decided to remove fuel subsidies, leading to a significant increase in food, energy, and transportation costs. This research will assess the broader socioeconomic impacts of this policy shock on Northern Nigeria, a region where poverty rates remain high, insecurity is structural, and adaptive capacity is low. Using a qualitative methodology, data will be collected through key informant interviews, community discussions, and textual analysis of official reports and socioeconomic data. Employing a social vulnerability framework, the analysis will examine how subsidy removal exacerbated social inequality and reshaped survival strategies. The findings will show that economic hardship was particularly severe for lower classes, people in the informal economy, and those in villages, resulting in reduced purchasing power, food insecurity, and social stress. Conflict zones and socioeconomically disadvantaged areas of Northern Nigeria were especially affected where social welfare programmes are clearly lacking or absent. The thesis argues that the sudden removal of subsidies, without any social welfare programme in place, increases social vulnerability and undermines the legitimacy of governance. The research concludes by recommending a new approach to subsidy reform, involving phased implementation, targeted support, and region-specific adaptation, to mitigate negative socioeconomic impacts and restore the legitimacy of state–citizen relations.
Co-Authors Usman Sambo Usman Sambo