SUBSIDY REMOVAL AND SOCIO-ECONOMIC DEVELOPMENT IN WUKARI LOCAL GOVERNMENT AREA, TARABA STATE, NIGERIA

Abstract

The removal of fuel subsidies in Nigeria has arisen as a pivotal economic policy with far-reaching socio-economic consequences. This paper explores the impacts of fuel subsidy removal on the Nigerian populace, particularly in Wukari LGA of Taraba State, Nigeria, focusing on changes in cost of living, transportation, income distribution, and social welfare. While the policy aims to reduce fiscal deficits and promote market efficiency, its implementation has disproportionately affected low- and middle-income households, exacerbating poverty, inflation, and inequality. The paper further explores the policy’s effect on informal sector employment and rural livelihoods, revealing a lack of adequate social safety nets and institutional mechanisms to cushion the adverse outcomes. Anchored in the Resource Curse Theory, the study argues that Nigeria’s mismanagement of oil wealth and reliance on rentier structures have intensified the socio-economic dislocations of subsidy reform. Drawing on both primary and secondary data and relevant literature, the paper finds that the subsidy removal, particularly following the 2023 policy shift, led to sharp increases in fuel prices and associated goods and services, weakening purchasing power and heightening public dissatisfaction. The paper recommends comprehensive policy measures, including targeted palliatives, investment in public infrastructure, and transparent governance frameworks to ensure equitable and sustainable outcomes.