Effects of Fuel Subsidy Removal on Household Income and Welfare in Kogi State, Nigeria

The research evaluates the socio-economic impacts of removing fuel subsidies on households in Kogi State within the framework of Supply-Side Economic Theory in Nigeria, using a survey research design. Of the 512 households approached, 480 provided valid responses, offering insight into the significant adverse effects of subsidy removal on income, spending patterns, and consumption at the household level. Findings indicate a marked decline in purchasing power, rising expenditures, and income instability, particularly affecting salaried employees and informal workers. Households prioritise essential needs, leading to reduced diets and limited use of amenities, with the most severe impact observed among impoverished households, intensifying income inequality and vulnerability. Rising fuel prices significantly induced inflation, increasing the costs of essential goods and services, which disrupted access to healthcare and education. Many families deferred medical treatments, reduced educational spending, and faced mobility constraints, exacerbated by reliance on fuel-dependent infrastructure. The study concludes that escalating fuel prices correlate directly with a higher cost of living, highlighting the vulnerability of families lacking affordable alternatives. The withdrawal of subsidies resulted in short-term social costs, underscoring the need for preventive measures to mitigate negative effects on household welfare.