FUEL SUBSIDY REMOVAL ON THE PURCHASING POWER OF CIVIL SERVANTS IN KOTON-KARFE LGA OF KOGI STATE, NIGERIA

This study assessed the impact of fuel subsidy removal on the cost of living, purchasing power, and welfare of civil servants in Koton-Karfe Local Government Area of Kogi State, Nigeria. A survey research design was adopted, and structured questionnaires were administered to civil servants across ministries, departments, and agencies within the LGA. Data were analyzed using descriptive statistics and Chi-square (?²) tests to determine the significance of relationships between subsidy removal, cost of living, and welfare outcomes. The results revealed that fuel subsidy removal had a statistically significant effect on the purchasing power and welfare of civil servants, as indicated by Chi-square values (?² = 273.153 and ?² = 217.331), both exceeding the critical value of 9.488 at a 0.05 significance level. Findings showed that increased transportation and food costs, coupled with stagnant wages, have eroded disposable income and worsened living conditions among public employees. The study recommends periodic wage adjustments and reinvestment of subsidy savings into welfare-enhancing initiatives such as affordable transportation and food support programmes to mitigate the adverse economic effects on civil servants.

0 19 Dec, 2025

pg: 10

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