Keywords
Household Expenditure
High Cost Of Transport Fare
High Cost Of Feeding
High Cost Of Children's School Fees
Article Number
049Abstract
The removal of fuel subsidies has created significant challenges for the people of Nigeria. Ever since the president announced this change, we've seen a sharp increase in the prices of goods and services across the country, hitting households hard, especially in Ukanafun Local Government Area of Akwa Ibom State. Unfortunately, it's the most vulnerable among us who are feeling the brunt of this situation. This study aimed to explore how the removal of fuel subsidies has impacted household spending in Ukanafun. We focused on two key areas: the rising cost of food and the soaring transportation fares. Using a survey research design, we gathered data from a population of 376,643 selected households in Ukanafun, ultimately sampling 400 of them through stratified and simple random sampling techniques. We analysed the data collected from both primary and secondary sources using simple regression analysis with the SPSS statistical tool. The results showed a significant negative impact of fuel subsidy removal on household feeding in Ukanafun, as well as on transportation costs. Based on these findings, we recommend that the Federal Government of Nigeria take immediate action by implementing agricultural support programmes to boost food production, which could help alleviate the effects of the subsidy removal and lower food prices in Ukanafun. Additionally, it's crucial for the government to focus on revitalising the nation's petroleum sector through effective policies and regulations, which could help bring down petrol prices and, in turn, reduce transportation fares in Ukanafun Local Government Area.References
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