NEOLIBERAL FUEL SUBSIDY REFORMS: IMPACT ON COMMERCIAL DRIVERS' LIVELIHOODS IN AGWADA, NIGERIA
Keywords:
Commercial Drivers, Economic Effects, Fuel Subsidy Removal, Livelihood Impact, Neoliberal ReformsAbstract
This study provides a nuanced analysis of the micro-level socio-economic
consequences of fuel subsidy removal in rural Nigeria, focusing on commercial drivers in
Agwada, Nasarawa State. Grounded in Welfare Economics Theory (WET), the research offers
a comprehensive framework for understanding the welfare and distributional effects of such
economic policies. Employing a mixed-methods approach, the study combines primary data,
obtained through structured questionnaires administered to commercial drivers at Mararaba
Agwada motor park, with secondary data from peer-reviewed scholarly sources and reputable
digital databases. Quantitative analysis of the survey data reveals that fuel subsidy removal has
significantly increased fuel prices, resulting in an over 50% rise in operational costs and a
corresponding decline in drivers’ earnings. These economic pressures have led to reduced
disposable income, increased indebtedness, depleted savings, and restricted access to
healthcare for drivers and their families. At the community level, the cascading effects include
suppressed market activities, declining school enrolment, and reduced employment
opportunities in vehicle maintenance. Despite adopting coping mechanisms such as fare
increases, route optimization, income diversification, and extended work hours, drivers
continue to face substantial economic hardships. The study underscores the need for targeted
interventions, including low-interest loans, infrastructure development, affordable healthcare
insurance, and reinstated fuel subsidies. These policy recommendations aim to alleviate the
economic burden on commercial drivers and promote socio-economic stability and resilience
within their communities.
