The Socio-Economic Implications of 2023 Fuel Subsidy Removal on Nigerians’ Standard of Living: a Study of Kaduna North Local Government of Kaduna State

Student: MATHEW MUSA (Project, 2025)
Department of Political Science
Kaduna State University, Kaduna, Kaduna State


Abstract

ABSTRACT The removal of Nigeria's fuel subsidy in 2023 marked a significant policy shift with widespread socio-economic implications. This study examines the impact of this policy on the standard of living of residents in Kaduna North Local Government, focusing on changes in cost of living, income levels, business operations, and access to essential goods and services. Utilizing a mixed-methods approach, the research gathered data from a sample of 350 respondents through questionnaires and interviews, employing stratified and cluster sampling techniques to ensure representation across the diverse wards in the area. Findings reveal that the removal of the fuel subsidy has led to substantial increases in transportation costs, food prices, and utility bills, disproportionately affecting low-income households. Small and medium-sized enterprises (SMEs) have also faced reduced profitability due to rising operational costs, with many adopting unsustainable coping mechanisms such as downsizing or reliance on loans. Although government initiatives, such as cash transfers and subsidies, aimed to alleviate the impacts, respondents largely perceived these measures as inadequate.

Keywords
socio-economic implications subsidy removal nigerians standard living kaduna north local