Fuel Subsidy Removal and Socioeconomic Wellbeing of Residents in Akwa Ibom State, Nigeria

This study examined the effect of fuel subsidy removal on the standard of living of residents in Akwa Ibom State, Nigeria. Specifically, it investigated the effect of increased transportation costs on household welfare, the influence of rising prices of goods and services on household consumption patterns, the effect of reduced household purchasing power on access to basic necessities, and the impact of increased household energy costs on household income and savings. A descriptive survey research design was adopted. The population comprised 848,517 registered voters aged 18 years and above in six selected urban Local Government Areas across the three senatorial districts of Akwa Ibom State, based on the Independent National Electoral Commission (INEC) 2023 Register of Voters. Using the Krejcie and Morgan sample size determination table, a sample of 384 respondents was selected through a multi-stage sampling technique involving purposive, stratified, and simple random sampling, of which 380 questionnaires were successfully retrieved and analyzed. Data were collected using a structured questionnaire and Key Informant Interviews (KIIs). The instrument was validated by experts in Measurement and Evaluation and Public Administration, while reliability was established using the Cronbach Alpha technique, which produced an acceptable reliability coefficient. Data were analyzed using descriptive statistics (frequency counts and percentages), while the hypotheses were tested using the Pearson Product Moment Correlation (PPMC) at the 0.05 level of significance. The findings revealed that increased transportation costs significantly affected household welfare (r = 0.059 > 0.101.); rising prices of goods and services significantly altered household consumption patterns (r = 0.254 > 0.101); reduced household purchasing power significantly constrained access to basic necessities and increased household energy costs significantly reduced household income and savings. The study concluded that fuel subsidy removal has significantly lowered the standard of living of residents in Akwa Ibom State by increasing the cost of living, weakening household purchasing power, and heightening financial vulnerability. The study recommended the implementation of targeted social protection programmes, transportation support schemes, effective price stabilization measures, expanded employment opportunities, improved electricity infrastructure, and increased investment in renewable energy to mitigate the adverse welfare effects of fuel subsidy removal.