Abstract
The removal of fuel subsidies in Nigeria has generated significant socio-economic challenges, with rural communities experiencing the harshest effects. While subsidies were initially intended to protect vulnerable groups from volatile fuel prices, their elimination has resulted in rising living costs, heightened poverty, and greater economic strain. In Peremabiri community of Bayelsa State, where livelihoods depend on small-scale farming, fishing, and informal trade, subsidy removal has triggered sharp increases in transportation costs, food prices, and agricultural input expenses, thereby deepening poverty among households. This study employed a descriptive survey design to examine the impact of fuel subsidy removal on rural poverty levels in Peremabiri. Primary data were obtained through structured questionnaires administered to fifty household heads selected using stratified random sampling, and analyzed using frequencies, percentages, and chi-square tests. Findings reveal a significant relationship between subsidy removal and worsening living standards, as households reported reduced food consumption, increased transport costs, and declining purchasing power. Many respondents adopted adverse coping strategies, including food rationing and the use of inefficient energy sources such as firewood. The study concludes that fuel subsidy removal, in the absence of targeted social protection measures, aggravates rural poverty and widens inequality. It recommends localized interventions such as conditional cash transfers, rural transport support, and agricultural input subsidies to mitigate the negative impact on vulnerable populations and promote more equitable rural development.
Keywords: Fuel Subsidy, Rural Poverty, Peremabiri Community, Fuel Price, Economic Strain