Co esponding au ho : Ro ipin Ademola Joseph
Copy igh © 2025 Au ho (s) e ain he copy igh o his a icle. This a icle is published unde he e ms o he C ea i e Commons A ibu ion License 4.0.
S a is ical analysis o pe cep ion o populace on he e ec o emo al o uel subsidy
Ademola Joseph Ro ipin *, Lan e Adeba a and Folashade Adeola Bola inwa
Depa men o S a is ics he Fede al Poly echnic Ado-Eki i Eki i S a e, Nige ia.
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 1700-1704
Publica ion his o y: Recei ed on 21 Ma ch 2025; e ised on 06 May 2025; accep ed on 09 May 2025
A icle DOI: h ps://doi.o g/10.30574/wja .2025.26.2.1561
Abs ac
This pape examines pe cep ion o populace on he e ec o emo al o uel subsidy on Nige ia economy. Ques ionnai e
was adminis e ed o 396 esponden s o da a collec ion. Po en ial e ec s ha a e conside ed o e ec s o uel subsidy
emo al on Nige ia economy a e business closu e, inc eased go e nmen e enue, inc eased po e y, in la ion, educed
budge de ici , unemploymen and o he s. Th ee ca ego ies which a e no awa e, ai ly awa e and e ily awa e we e
conside ed on he le el o awa eness o uel subsidy emo al wi h hei pe spec i e on he ques ion ha says in you
opinion, wha a e he po en ial e ec s o uel subsidy emo al on he Nige ia economy. Chi-squa e es was used o he
analysis and also mul iple cha was used o show awa eness o uel subsidy emo al wi h po en ial e ec s on Nige ia
economy. Conclusi ely he esul shows ha emo al o uel subsidy a ec s Nige ia economy and po e y is he
po en ial e ec o emo al o uel subsidy and i poses mo e disad an ages han ad an ages.
Keywo ds: Populace; Ques ionnai e; Fuel subsidy economy; Pe cep ion
1. In oduc ion
A uel subsidy is a discoun o e ed by he go e nmen o he ma ke p ice o ossil uels in an e o o lowe he p ice
ha consume s mus pay. When subsidies a e in place, consume s would pay less pe li e o he pe oleum p oduc .
Fuel subsidies a e a ho issue o con o e sy e e ywhe e because o hei quan i y, in luence on esiden s' wellbeing,
and capaci y o suppo na ional budge s Okechukwu and O aga (2022)
Nige ia i s in oduced uel subsidies in he 1970s in esponse o he shock o 1973 oil p ices. Fuel subsidies we e
pa ially elimina ed in 1986. Since hen, he uel subsidies ha e emained in place. In 2012, he go e nmen ab up ly
discon inued i s uel subsidy p og am. Following he wi hd awal, he e we e la ge-scale demons a ions aimed a
p essu ing he go e nmen o eins a e he uel subsidy i had p e iously elimina ed.
Chelminski (2018) discussed ha Nige ia is no he only na ion o ha e done away wi h uel subsidies; in 1997,
Indonesia did he same in esponse o he Asian inancial c isis. This mo e esul ed in a spike in domes ic uel cos s,
weeks-long iolen io ing, and he go e nmen 's depa u e in 1998.
The majo i y o economic ac i i y in Nige ian socie y is powe ed by pe oleum, speci ically Pe oleum Mo o Spi i
(PMS). This is due o he ac ha he manu ac u ing and consuming sec o s o he coun y's economy a e bo h
monocul u al and because o he inc eased p oduc ion cos s ha would ul ima ely lead o an inc ease in o al p icing,
doing away wi h he uel subsidy will ha e se e e economic implica ions on he en i e indus y (Adenikinju, 1998).
Since he pe oleum sec o was de egula ed, he e has been a cons an inc ease in he p ice o pe oleum due o he
ongoing sho age o pe oleum p oduc s, which de egula ion was in ended o end. In Nige ia, howe e , he e e se has
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 1700-1704
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occu ed o expec a ions ha de egula ion would c ea e oom o compe i ion, which would ul ima ely esul in cheape
p icing and be e supply and dis ibu ion ne wo ks
Acco ding o Ozili and Obio a (2023), he go e nmen should assess he e ec s o elimina ing gasoline subsidies on
people and businesses ca e ully and o e pallia i e ca e as well as o he o ms o inancial assis ance o lessen he
nega i e e ec s on people and businesses.
Many s udies ha e looked a he impac o e o ming subsidies on na ional economies as well as he global social and
en i onmen al consequences o elimina ing subsidies. Bu niaux e al.(2009); Koplow (2009).
Acco ding o Omi ogun e al. (2021), he economy o Nige ia may emi less ca bon dioxide i uel subsidies a e
elimina ed. Sa ings om subsidies will be shi ed by he go e nmen o s a egic sec o s ha can suppo sus ained
economic expansion. Economic di e si ica ion, social p og ams, and be e in as uc u e a e all pa o he agenda.
Subsidies a ec ma ke dynamics, Suleiman e al(2024). Gidigbi and Bello (2020) as well as Ogunode, Ahmed, and
Olugbenga (2023) p oposed using he sa ings om he elimina ion o gasoline subsidies o suppo he g ow h o o he
economic sec o s.
In his pape , pe cep ion o populace on he po en ial e ec s o uel subsidy emo al on he Nige ia economy was
examined, some o ad an ages and disad an ages we e iden i y. also.
Aim and Objec i es
The aim o his s udy is o examine he pe cep ion o populace on he e ec posed by uel subsidy emo al.
Objec i es
• To examine he e ec o emo al o uel subsidy on he Nige ia economy.
• To iden i y he ad an ages and disad an ages o uel subsidy in Nige ia.
2. Ma e ial and me hods
• Chi Squa e es was used o he analysis o de e mine i uel subsidy emo al a ec s Nige ia economy
2.1. Tes S a is ics
( )
−
=
ij
ijij
e
eo 2
2
2.2. Hypo hesis s a emen s
• H0: Remo al o uel subsidy does no a ec Nige ia economy.
• H1: Remo al o uel subsidy a ec s Nige ia economy.
Table 1 In you opinion, wha a e he po en ial e ec s o uel subsidy emo al on he Nige ia economy?
A e you awa e o
he emo al o
subsidy
Business
O he s
Closu es
Inc ease
go e nmen
Re enue
Inc eased
po e y
In la ion
budge
Reduced
de ici
Unemploymen
To al
Pe cen age
%
No Awa e
5
8
7
11
9
2
3
45
11.4
Fai ly Awa e
13
16
24
6
22
5
3
89
22.4
Ve ily Awa e
23
36
80
64
44
15
0
262
66.2
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 1700-1704
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Table 2 Chi-squa e Resul
Chi-Squa e Tes s
Value
d
Asymp o ic Signi icance (2-sided)
Pea son Chi-Squa e
33.1219a
2
0.001
Le el o Signi icance
05.0=
; Decision Rule: Rejec H0 i P- alue < α- alue, o he wise do no ejec . Since p- alue < α- alue = 0.001 < 0.05), we
ejec H0
Table 3 Populace Pe cep ion Pe cen age on he Po en ial E ec s o Remo al o Fuel Subsidy on Nige ia Economy
Populace S a us
Po en ial E ec s
No Awa e
Pe cen age %
Fai ly Awa e
Pe cen age %
Ve ily Awa e
Pe cen age %
Business Closu es
5
11.1
13
14.6
23
8.78
Inc ease Go e nmen
Re enue
8
17.8
16
18
36
13.74
Inc ease Po e y
7
15.6
24
27
80
30.53
In la ion
11
24.4
6
6.7
64
24.43
Reduced Budge De ici
9
20
22
24.7
44 16.79
Unemploymen
2
4.4
5
5.6
15
5.7
O he s
3
6.7
3
3.4
0
0%
F om able 3, e ily awa e populace s a us shows ha ou o 262 esponden s 8.78%(23) ha e opinion ha business
closu e is he po en ial e ec , 13.74%(36) ha e opinion inc ease go e nmen e enue is he po en ial e ec ,
30.53%(80) ha e opinion inc ease po e y is he po en ial e ec , 24.43% (64) ha e opinion ha in la ion is he
po en ial e ec , 16.79%(44) ha e opinion ha educed budge de ici is he po en ial e ec , and 5.7%(15) ha e opinion
ha unemploymen is he po en ial e ec
Figu e 1 A mul iple cha shown awa eness o uel subsidy emo al wi h po en ial e ec s on Nige ia economy
2.3. Ad an ages and Disad an ages o Fuel Subsidy Remo al
Fuel subsidy measu es helps economic ac i i ies by keeping p ices low and con olling in la ion and he s udy on he
e ec s o emo al o uel subsidy on Nige ia economy showed ha he e a e ad an ages and disad an age
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 1700-1704
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Ad an ages
Nige ians daily uel consump ion d opped (Kya i, 2023), Go e nmen e enue was inc eased o und heal h,
in as uc u es and educa ion, and some Nige ians a oid luxu y pu chases and unnecessa y spending o money in social
ga he ings.
Disad an age
Smuggling o subsidized pe ol o neighbou ing coun ies and selling o hem a ma ke p ices had esul ed in inc easing
daily consump ion o PMS in Nige ia. Kya i (2022),
i has nega i e impac o ano he inancial bu den on Nige ian SMEs, educe he quan i y o hings he income o wo ke s
can buy wi h hei s a ic income b ings ha changes in consump ion and spending beha io . I aises pe ol p ices. The
gene al cos o li ing, in la iona y p essu es, and a ailabili y and a o dabili y o goods and se ices indi ec ly a ec
esiden s' li ing s anda ds.
3. Resul s and Discussion
Ou o 396 esponden s, i was ound ha 11.4% (45), 22.4% (89), and 66.2% (262) we e no awa e, ai ly awa e, and
e ily awa e o he emo al o uel subsidy, espec i ely. The analysis's esul indica es ha he null hypo hesis, Ho, is
ejec ed because he p- alue (0.001) is less han he signi icance le el (0.05). Acco ding o able 2 e ily awa e
popula ion s a us indica es ha , ou o he 262 esponden s, 8.78% (23), belie e ha a business closu e is a po en ial
e ec . 30.53% (80) belie e ha inc eased po e y is a po en ial e ec , 24.43% (64) belie e ha in la ion is a po en ial
e ec , and 13.74% (36) belie e ha go e nmen e enue is a po en ial e ec . 5.7% (15) belie e ha unemploymen is
he possible esul , while 16.79% (44) belie e ha a educed budge de ici is he possible e ec .
Also, i is disco e ed om he mul iple ba cha ha inc ease po e y and unemploymen a e he highes and lowes
po en ial e ec s o uel subsidy emo al ha a ec s Nige ia economy.
4. Conclusion
I is concluded ha emo al o uel subsidy a ec s Nige ia economy and inc eased po e y is he highes po en ial e ec
ou o all e ec s. I is also poses mo e disad an ages han ad an ages
Compliance wi h e hical s anda ds
Acknowledgmen s
The au ho s wish o exp ess hei g a i ude o TETFUND o hei suppo in his esea ch.
Disclosu e o con lic o in e es
The au ho s decla e ha hey ha e no known compe ing inancial in e es o pe sonal ela ionship ha could ha e
appea ed o in luence he wo k epo ed in his pape .
S a emen o in o med consen
In o med consen was ob ained om all indi idual pa icipan s included in he s udy.
Re e ences
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