Subsidy Removal and Economic Development in Nigeria

This study examines the relationship between subsidy removal and economic development in Nigeria. This study adopts a quantitative research design, specifically a descriptive and explanatory survey design. The population of the study comprises economically active Nigerians who are directly affected by fuel subsidy removal. This includes civil servants, private sector employees, small and medium-scale business owners, transport operators, and self-employed individuals. A minimum sample size of 120 respondents is adopted to meet statistical robustness and allow for reliable regression analysis. A multistage sampling technique is employed while the purposive sampling was used to select major urban areas. Stratified sampling was adopted to categorize respondents by occupation; and Simple random sampling to select respondents within each stratum. Data analysis employed descriptive statistics and linear regression, including ANOVA and coefficient analysis. Findings indicate that fuel subsidy removal significantly increases the cost of living, which negatively affects economic development. Government mitigation measures partially offset these effects but are insufficient. Recommendations include phased subsidy removal, targeted social protection, infrastructure investment, and improved governance.