Fuel Subsidy Removal and Socio-Economic Development of Ebonyi State: A study of Selected Local Government Areas

Abstract

The study examined the effect of fuel subsidy removal and socio-economic development of selected local government areas of Ebonyi State... The instrument for data collection was questionnaire instrument. Product Moment Correlation through Statistical Package for Social Sciences (SPSS) Version 21 was adopted to test the hypotheses that guide the study. The study revealed that fuel subsidy removal had significantly affected per capita income of the communities of selected local government areas of Ebonyi State; fuel subsidy removal had significantly contributed to high cost of commodities in selected local government areas of Ebonyi State; and fuel subsidy removal had significantly increased unemployment in selected local government areas of Ebonyi State. Based on the findings, the study recommended that there were need to make provisions for social safety nets in order to reduce the effect of fuel subsidy removal on the per capita income of the communities of Selected local government areas of Ebonyi State; there were need for price control in order to reduce the effect of fuel subsidy removal on costs of commodities in Selected local government areas of Ebonyi State; and there were need for the government to promote job creation in order to reduce the effect of fuel subsidy removal on unemployment in Selected local government areas of Ebonyi State.