OIL PRICE SUBSIDY REMOVAL IN NIGERIA AND FEDERAL UNIVERSITY LOKOJA STAFF PERFORMANCE: AN EMPIRICAL ANALYSIS

The removal of fuel subsidy in Nigeria has significantly increased transportation and vehicle maintenance costs, with implications for employees' welfare and productivity. This study examined the effects of oil price subsidy removal on the performance of staff at the Federal University Lokoja, focusing on commuting costs, vehicle maintenance expenses, and coping strategies. A mixed-methods research design was adopted, while data were collected from 472 academic and non-academic staff using structured questionnaires. Descriptive statistics, Difference-in-Differences (DiD), multiple regression, and logistic regression techniques were employed for data analysis. The findings revealed that average daily transport costs and monthly commuting expenditure increased by 170.9% and 162.7%, respectively, following subsidy removal. Increased journey-to-work costs had a significant negative effect on staff performance , while higher vehicle maintenance costs also significantly reduced productivity . Vehicle servicing (61%) and spare parts (58%) recorded the highest increases in maintenance costs. Staff responded by adopting coping strategies such as carpooling (29.9%) and the use of public transportation (28.0%). The study concludes that fuel subsidy removal has adversely affected staff welfare and institutional productivity through increased commuting and maintenance costs. It recommends transport support schemes, improved public transportation, flexible work arrangements, and periodic salary adjustments to mitigate the adverse effects of future fuel price reforms.