Title: Effect of Fuel Subsidy Removal on the Standard of Living of Cooperative Members in Anambra State, Nigeria
Authors: Nwankwo Obioha Francis, Ojiagu Cordelia Nkechi, Agbasi Emmanuela Uju, Okafor Esther Ogochukwu, Theresa Ukamaka Anigbogu and Okoye Chioma Lilian
Volume: 9
Issue: 7
Pages: 150-161
Publication Date: 2025/07/28
Abstract:
In the context of Nigeria's fuel subsidy removal, which has led to difficulties and hardships, this study aimed to investigate the impact of the removal on the standard of living of cooperative members in Nigeria, with a specific focus on Anambra State. The sample size consisted of 400 members from a total population of 19,266 members, drawn from 546 cooperative societies, using Taro Yamane formula. Data was collected from the respondent with the aid of a structured questionnaire. The instrument was validated by experts and the reliability of the instrument was determined using Cronbach Alpha, with a reliability coefficient of 0.97. Data collected were analyzed using descriptive statistics (arithmetic mean and standard deviation) and inferential statistics (multiple regression analysis). The hypotheses were tested at a 5% level of significance. The results obtained showed that fuel subsidy removal significantly increased the cost of education. The Rē of 0.386 indicated that about 38.6% of the variation in education cost was explained by fuel subsidy removal. It was also shown from the result that fuel subsidy removal had a significant and positive effect on transportation costs. That approximately 46.9% of the variance in transportation costs was explained by fuel subsidy removal. The study concluded that the removal of fuel subsidy has had a great impact on the livelihood and survival of cooperative members in Anambra State and Nigerians in general. The study recommended among others that the policymakers should consider alternative measures to mitigate the danger of subsidy removal and its obvious effect on vulnerable populations in Anambra State Nigeria, while promoting economic stability.