People’s Voices on the Implications of Fuel Subsidy Removal on Household Expenditure and Savings in Birnin-Kebbi Metropolis
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Abstract
This paper examines the impacts of the fuel subsidy removal on household spending and saving behavior among 190 households in the Birnin-Kebbi metropolis, utilizing semi-structured surveys and interviews for the data collection and analysis. The sudden removal of fuel subsidies by the Nigerian government adversely impacted households’ expenditure and saving patterns, with the majority cutting nonessential spending due to income doubt. Survey results reveal that 100% of the surveyed population was aware of the adverse consequences of the exit of the fuel subsidy. 97% changed their spending habits, and 89% could not save more. Consequently, 100 percent of the households are experiencing financial stress affecting their health and well-being. These findings can help policymakers to come up with targeted intervention initiatives such as promoting financial literacy, providing palliatives, subsidizing transport fare, and creating job opportunities in this economic hardship.
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