Impact of Fuel Subsidy Removal on Transportation Cost and the Cost of Agricultural Produce in Bosso LGA

Ojekunle Joel Ademola, Ibrahim Yusuf Bosso

Abstract


The removal of fuel subsidy has undoubtedly had significant effects on various sectors of the economy. Agriculture, being one of the key sectors of the Nigerian economy has not been left out, due to its dependence on transportation. The study assessed the impact of fuel subsidy removal on the cost of agricultural produce in Bosso Local Government Area of Niger state. The study adopted a quantitative research design relying on secondary data collected from Niger State Bureue of Statistics, the Transportation Unions as well as the Niger State Agricultural and Mechanization Development Authority (NAMDA). Collected data were analysed using Pearson correlation and simple linear regression. The findings revealed that fuel price had significant impact on the cost of food items. It was further revealed that there was positive relationship between fuel price and food prices. The study recommended that the state government should offer targeted subsidies for transportation of agricultural produces and well food prices in order to cushion the effect of fuel subsidy removal.


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References


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