DOI: 10.11648/j.ajere.20261102.12 ISSN: 2578-787X

Fuel Subsidy Removal, Social Resilience, and Governance Trust: Evidence from Kogi State, Nigeria

Olunde Adeyemoh, Oshewolo Segun, Rotimi Ekundayo
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This paper examines household adaptation strategies and perceptions of policy impacts following the removal of fuel subsidies in Kogi State, Nigeria. Using the framework of Neoliberal Economic Theory, the financial context of subsidy removal was examined within the neoliberal discourse of market liberalisation and reduced state control. The research design is a survey with quantitative data analysed using cluster analysis, logistic regression, descriptive statistics, cross-tabulation, and ANOVA. These results show reduced consumption and the diversification of income sources as coping mechanisms, another demonstration of the kinds of economic stress inflicted by subsidy changes. Logistic regression indicates that income quartile and the nature of work are significant factors influencing the probability of adopting a coping strategy. At the same time, ANOVA confirms occupation as an important factor in attitudes towards government policies. Civil servants exhibit somewhat positive attitudes towards state policies. At the same time, self-employed and unemployed respondents have more negative attitudes, as would be expected given their relative exposure and access to state support. The paper finds that the government responses intended to mitigate the impact of subsidy removal (such as cash transfers and safety nets) were widely perceived as ineffective, poorly targeted and not transparent. Respondents’ distrust of government interventions following the removal of fuel subsidies was reinforced by their reactions to the policies. The study therefore highlights the need for policy responses that are transparent, accountable and carefully targeted, so that they meet both the economic and social needs of vulnerable groups in the state. By linking household coping strategies with levels of public acceptance or dissatisfaction, the paper contributes to the wider debate on the social and economic consequences of neoliberal reforms.

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