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The study aims to investigate the effects of fuel subsidy removal on household living costs in Nigeria from 1986 to 2025.

April 21, 2026Open Access

Fuel Subsidy Removal and Living Costs in Nigeria (1986–2025)

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The study aims to investigate the effects of fuel subsidy removal on household living costs in Nigeria from 1986 to 2025.
Employed an Autoregressive Distributed Lag (ARDL) bounds testing approach
Used an Error Correction Model (ECM) to analyze short and long-run dynamics
Incorporated various control variables like inflation, exchange rates, and transportation costs
Fuel subsidy removal significantly raises household living costs in both the short and long term
The impact is especially severe on low-income, larger households, and rural populations
Transportation costs and currency depreciation are key channels amplifying this burden

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Examines how removing fuel subsidies affects living costs in Nigeria, indicating major economic implications.

Onipe Adabenege Yahaya (2026) studied this question.

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