International Journal of Sub-Saharan African Research (IJSSAR)

Background: Fuel subsidy removal, introduced by Tinubu’s Administration in May 2023 to enhance efficiency in the oil and gas sector, has raised concerns about its effects on household economic wellbeing.
Objective: To examine the effect of fuel subsidy removal on household income, cost of living, and expenditures in Jalingo Local Government Area.
Method: The study adopted a descriptive survey research design. With population of 12,490, a sample of 106 households from the selected wards was arrived at using the Hansen-Hurwitz Estimator. Data were obtained through mixed methods which combines qualitative interviews and quantitative questionnaires. The t-statistic tested significant differences between pre and post subsidy removal periods, while descriptive statistics summarized responses. Results: The removal of fuel subsidy increased fuel prices, triggering widespread inflation, raising the cost of goods and services, eroding household income, and increasing expenditures.
Conclusion: Stagnant wages and rising prices have reduced purchasing power, lowered living standards, limited savings, and caused demand deficiency, reducing business revenues.
Unique Contribution: The study links macroeconomic policy reforms to microeconomic realities, bridging a gap between national policy and local socioeconomic conditions. Recommendations: Salary adjustments, social safety nets, small business support, improved public transportation, and price regulations.