SUBSIDY REDUCTION ON PETROLEUM PRODUCTS AND THE SPENDABLE INCOME OF CIVIL SERVANTS IN ANAMBRA STATE, NIGERIA

Abstract

This study examines the effect of subsidy reduction on petroleum products in the spendable income of civil servants in Anambra State, one of Nigeria’s thirty-six states. A survey research method was adopted in the study. The work adopted neo-liberalism theory as theoretical framework of analysis. The statistical analyses used were non-parametric analysis, particularly graphical analysis using the mode. The results of the analysis showed that subsidy reduction on petroleum products has serious reduction on the spendable income of civil servants in the state. The implication is that civil servants are not able to meet up with their responsibilities. Therefore, they will device some other means of making money to cushion the effects of the increase in price of items and services as a result of the increase in the price of petroleum products. It was accordingly recommended that government should embark on outright removal of subsidy on petroleum products and upgrade/review salaries of civil servants in line with the economic realities.