Evaluating the effect of Subsidy Removal on Nigerian Consumers: Strategies to Alleviate the Effect

Abstract

This study examined the impact of Nigeria's fuel subsidy removal on consumers, focusing on the role of strategic investments in public transportation, renewable energy, and social safety nets. Using a cross-sectional survey design, data were collected from a diverse population in Delta State, including business owners, employees, household customers, and immigrants, to assess how these strategies can mitigate the adverse effects of subsidy removal. The findings revealed that investments in public transportation, renewable energy, and social safety nets significantly and positively influence consumer welfare, underscoring their importance in addressing the economic challenges associated with the policy shift. The study concludes that enhancing public transportation infrastructure, increasing renewable energy investments, and strengthening social safety nets are crucial for supporting Nigerian consumers during the transition away from fuel subsidies. These measures not only alleviate the immediate financial burden on the population but also contribute to long-term economic stability and sustainability. The Nigerian government is recommended to prioritize these strategic investments to foster a more resilient economy and improve the quality of life for its citizens.