Impact of Fuel Subsidy Removal and the People's Well-Being in Calabar Metropolis, Cross River State, Nigeria

Abstract

The study examined the impact of fuel subsidy removal on the people's well-being in Calabar Metropolis. Thus, specifically, the study aims to find out the reasons for fuel subsidy removal and to investigate the economic effect of the fuel subsidy removal on the people's well-being in Calabar Metropolis. The structural functionalism theory was selected and utilized in this study. This study adopts a qualitative research method, and in-depth interviews were used for data collection using traders, students, and academic staff from the University of Calabar, artisans, political stakeholders, and commercial drivers. The ten (10) key in-depth interviews were purposefully selected using the snowball sampling method. Two themes were developed, and thematic data analysis was adopted. The results indicate that the elimination of fuel subsidies was driven by factors such as addressing corruption, fostering growth in crucial national development sectors, and supporting the growth of domestic refineries. The research findings underscore that the removal of fuel subsidies has had significant repercussions on people's well-being, primarily in the form of increased transportation costs and higher prices of essential food items. Consequently, the study concludes that poverty remains a prevalent issue in Nigeria. While in the long term, this move is expected to benefit the economy by reallocating resources to sectors like agriculture, education, and healthcare, its negative effects are particularly pronounced in the absence of government-implemented relief measures to mitigate the impact on citizens. It was recommended, among others, that the government should establish social safety nets and targeted welfare programmes to support vulnerable and low-income households. These programmes can include cash transfers, food assistance, and subsidies on essential goods for the most affected individuals and families. Also, the government should invest in public transportation by allocating resources to improve and expand public transportation systems. This will provide an alternative to private vehicle usage, reducing the overall burden of increased fuel prices.