International Journal of Advance Research Publication and Reviews

International Journal of Advance Research Publication and Reviews
Peer-Reviewed | Multi-Disciplinary Journal

ISSN: 3049-0103 (O)

Impact Factor: 4.33

THE POLITICS OF FUEL SUBSIDY REMOVAL AND SOCIOECONOMIC WELFARE IN NASARAWA STATE

Author

Usman Gayam Usman

Abstract

 This study examined the politics of fuel subsidy removal and socioeconomic welfare in Nasarawa State, Nigeria. Specifically, the study investigated the effects of fuel price increase, transportation cost, government palliative measures, and political trust in government on the socioeconomic welfare of residents in the state. A descriptive survey research design was adopted. The population of the study comprised 2,886,274 residents of Nasarawa State, while a sample size of 400 respondents was determined using the Taro Yamane (1967) formula. A multistage sampling technique involving purposive, stratified, and simple random sampling techniques was employed in selecting the respondents. Primary data were collected through a structured questionnaire. The data were analysed using   Partial Least Squares Structural Equation Modeling (PLS-SEM).  The findings revealed that fuel price increase had a significant effect on socioeconomic welfare (β = 0.202, t = 7.741, p < 0.001). Transportation cost also had a significant effect and emerged as the strongest predictor of socioeconomic welfare (β = 0.395, t = 14.347, p < 0.001). Government palliative measures significantly influenced socioeconomic welfare (β = 0.106, t = 3.312, p = 0.001), while political trust in government had a significant positive effect on socioeconomic welfare (β = 0.299, t = 9.420, p < 0.001). The study concluded that the politics of fuel subsidy removal significantly influenced the socioeconomic welfare of residents in Nasarawa State and that effective palliative measures, affordable transportation, stable fuel pricing, and improved political trust are essential for mitigating the adverse effects of subsidy reforms. The study recommended that government should stabilize fuel prices through improved domestic refining capacity, invest in affordable public transportation, strengthen and effectively target palliative programmes, and enhance transparency and accountability to build public trust in future economic reforms.

Keywords

Fuel Subsidy Removal, Fuel Price Increase, Transportation Cost, Government Palliative Measures, Political Trust in Government, Socioeconomic Welfare, Nasarawa State, PLS-SEM.

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