The Socioeconomic Implications of Fuel Subsidy Removal: Assessing Household Welfare and Adaptive Strategies in Bayelsa State, Nigeria

This study investigates the socioeconomic implications of fuel subsidy removal on households in Bayelsa State, Nigeria, with a specific focus on income, expenditure patterns, access to essential services, and adaptive strategies. The central problem addressed is the widespread economic pressure and welfare challenges experienced by households following the removal of fuel subsidies in Nigeria. The objectives include assessing the impact on household welfare, examining access to services, evaluating coping strategies, and analyzing the role of socioeconomic factors in household resilience. Primary data were collected through a structured questionnaire designed on a 5-point Likert scale and administered to 520 households across urban and rural areas of Bayelsa State using a multi-stage sampling technique. A survey research design was adopted, and data were analyzed using descriptive statistics, ordered logit regression, and multiple regression models. Key findings reveal that subsidy removal has led to a decline in household income, increased expenditure, and reduced access to healthcare, education, transportation, and energy. Socioeconomic factors such as income level, education, employment, and urban residence were significant predictors of household resilience. Households adopted various coping mechanisms including meal reduction, job diversification, and a shift to public transport. The study concludes that while subsidy removal may achieve fiscal goals, it imposes significant social costs, particularly on low-income households. It recommends the implementation of targeted social safety nets, investment in affordable public services, and income support initiatives to cushion the adverse effects of the policy and improve household welfare in post-subsidy regimes.