Consequences of Fuel Subsidy Removal on Unemployment in Nasarawa State, Nigeria

Abstract

This study examines the consequences of fuel subsidy removal on unemployment in Nasarawa State, Nigeria. Relying on secondary data sourced from journals, textbooks, and Central Bank of Nigeria (CBN) bulletins, the research investigates the broader socio-economic implications of subsidy reform, with a particular focus on employment dynamics. The findings reveal a significant correlation between the removal of fuel subsidies and rising unemployment levels in the state. Specifically, the study highlights how increased fuel prices have elevated operational costs for small and medium enterprises (SMEs), which serve as a major source of employment in Nasarawa State. This economic pressure has forced many businesses to downsize or shut down, leading to substantial job losses, especially in the informal sector. The study further identifies the broader economic disruptions caused by the subsidy removal, including reduced mobility, limited access to livelihoods, and diminished consumer purchasing power. In conclusion, while subsidy removal aims to ensure fiscal sustainability, its adverse impact on employment cannot be overlooked. The study recommends the implementation of comprehensive job creation and skills development policies, targeted social protection programmes, and strategic investments in public transportation to mitigate the negative effects. These findings provide critical insights for policymakers, legislators, and development actors working to balance economic reforms with social stability and inclusive growth in Nigeria.