Full Length Research Paper

Impact of Fuel Subsidy Removal on Agricultural Production among Smallholder Farmers in Niger State, Nigeria

Samson Olayemi Sennuga, Ezekiel Oluwaseun Isola, Joseph Bamidele, Daniel Anone Ameh and Mudashir Adeola Olaitan

Article Number - 662BD198E54B6  | Vol. 5(2), pp. 7-17, May 2024  | 
 Received: 9 February 2024 |  Accepted: 16 April 2024  |   Published: 1 May 2024

Copyright © 2024 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0.


The study examined the impact of fuel subsidy removal on agricultural production among smallholder farmers in Niger state, Nigeria. Four objectives guided the study. Data were collected with structured questionnaires distributed to 120 smallholder farmers. The study used a multistage stage random sampling procedure to select farming household from each village. Descriptive statistics, regression and Likert type scales were used to analyze the data. The results of logistic regression results revealed that the removal of fuel subsidy has negatively impacted agricultural activities in the study area with challenges such as increased in transportation cost, inadequate vehicles to transport produce to the market due to high cost of fuel, poor sales and lastly increase in prices of agricultural commodities in the country presently. The results also revealed that youths between the ages of 20-29 (64.2%) dominated in the field of agriculture, this prompted the researcher to draw conclusions on the fact that agriculture is a lucrative industry for youths to venture into. The findings revealed that high cost of transportation affects the price of agricultural produce while the distance that exists between the market and the farms is a major reason why the cost of transportation is high. Therefore, the government should support rural farmers through subsidized transportation, improved market access, incentives and road networks. The study therefore suggested that emphasis should be made on thorough research before implementing policies like fuel subsidy removal, advocating for a gradual transition to mitigate hardships for citizens, particularly among smallholder farmers, in Niger State.


Keywords: Fuel subsidy, Smallholders’ farmers, Agricultural production, Niger, Transportation.



Abayomi, A., Adam, S. O., & Alumbugu, A. (2015). Oil Exportation and Economic Growth in Nigeria. Developing Country Studies, 5(15), 83-92.

Abdulkareem, A., & Abdulhakeem, K. A. (2016). Analysing Oil Price Macroeconomic Volatility in Nigeria. CBN Journal of Applied Statistics, 7(1), 1-22.

Adekoya, O. B. (2021). Revisiting Oil Consumption- Economic Growth Nexus: Resource-Curse and Scarcity Tales. Resources Policy70, 101-911.

Adelabu, A. (2012). Food Security: A Threat to Human Security in Nigeria. Journal of Health and Social Issues, 7(2), 1-11.

Adenikinju, A. (2009). Energy Pricing and Subsidy Reforms in Nigeria.

Adeniyi, O., Oyinlola, A. & Omisakin, O. (2011). Oil Price Shocks and Economic Growth in Nigeria: Are Thresholds Important? OPEC Energy Review, 35(4), 308-333.

Adepoju, O. O., Balogun, A. Q., & Bekesuomowei, O. D. (2023). Impact of fuel subsidy removal on gross domestic product and transportation cost in Nigeria. European Journal of Theoretical and Applied Sciences, 1(5), 769-777.

Adinoyi, F. S., & Kpae, G. (2023). Examining The Suitable Palliatives In Cushioning The Removal Of Fuel Subsidy In Nigeria. International Journal of Business and Applied Economics, 2(6), 981-988.

Agu, A. O., Ekwutosi, O. C. & Augustine, A. N. (2018). Effect of Subsidy Removal on Nigerian Economy. Advance Research Journal of Multi-Disciplinary Discoveries, 23(1), 06-12.

Akinlo, A. E. (2012). How Important is Oil in Nigeria’s Economic Growth? Journal of Sustainable Development, 5(4), 165-179.

Akinyemi, O., Alege, P.O., Ajayi, O.O., Adediran, O.S & Urhie, E. (2017). A Simulation of the Removal of Fuel Subsidy and the Performance of the Agricultural Sector in Nigeria Using a Dynamic Computable General Equilibrium Approach. Covenant Journal of Business and Social Sciences, 8(1), 60-70.

Balouga, J. (2012). Nigerian Local Content: Challenges and Prospects. International Association for Energy Economics4, 23-26.

Bazilian, M., & Onyeji, I. (2012). Fossil fuel subsidy removal and inadequate public power supply: Implications for businesses. Energy Policy, 45, 1-5.

Ibanga, I. (2011). The Economics of Privatizing and Deregulating the Nigerian Downstream Oil Sector.

Izom, Y. D., Wakili, N. T., & Aliyu, U. (2023). Policy of Fuel Subsidy Removal in Nigeria: Problems, Prospects and ways Forward. International Journal of Research and Innovation in Social Science, VII(X), 420-429.

Kilian, L. (2014), Oil Price Shocks: Causes and Consequences. Annual Review of Resource Economics, 6, 133-154.

Lorussoa, M., & Pieronib, L. (2018), Causes and Consequences of Oil Price Shocks on the UK Economy. Economic Modelling, 72, 223-236.

Obasi, V. U., Ezenkwa, E. C., Onwa, D. O. & Nwogbaga, D. M. E. (2017). The political economy of fuel subsidy removal in Nigeria. African Journal of Politics and Administrative Studies, 9(1), 76-81.

Obo, U. B., Omenka, J. I., Agishi, T. V. & Coker, M. A. (2017), Fuel Subsidy Removal and the Ubiquity of Hardship in Nigeria. Advances in Social Sciences Research Journal, 4(14), 113-126.

Ocheni, S. I. (2015). Impact of Fuel Price Increase on the Nigerian Economy. Mediterranean Journal of Social Sciences, 6(1) S1, 560-569.

Ogbu, O. (2012). The Removal of Oil Price Subsidy in Nigeria: Lessons in Leadership and Policymaking in a Trust-Deficit Environment. Brookings Institution.

Okwuanya, I., Ogbu, M. & Pristine, J. M. (2015). An Assessment of the Impact of Petroleum Subsidy on Consumer Price Index in Nigeria. Global Journal of Interdisciplinary Social Sciences, 4(1), 36-39.

Olaniyi, A.A. (2016), Effects of Fuel Subsidy on Transport Costs and Transport Rates in Nigeria. Journal of Energy Technologies and Policy, 6(11), 1-9.

Omoniji, B. (2012). Subsidy Removal, Tougher Times Ahead in 2012. The Nation, 2nd January, p. 2.

Onanuga, A. (2011). Subsidy Battle in Lagos: Labour, Government Forces Clash at Town Hall Meeting. The Nation, p. 13.

Onyeizugbe, C. U. & Onwuka, E. M. (2012). Fuel Subsidy Removal as an Imperative for Enhancing Business Development in Nigeria. VSRD International Journal of Business and Management Research, 2(9), 454-461.

Sanchi, I. D., Alhassan, Y. J., Sabo, A. Y., & Manga, T. A. (2023). Sudden Exit of Fuel Subsidy and its Implications on Agricultural Productivity in the 2023 Production Season: A Review. Cross Current International Journal of Agriculture and Veterinary Sciences. 5(4), 1-10.

Sheeran, J. (2015). Hunger as a National Security and Global Stability Issue [Internet]. Washington (DC): Women’s Foreign Policy Group 2008

Siddig, K., Minor, P., Grethe, H., Aguiar, A. & Walmsley, T. (2015). Impacts on poverty of removing fuel imports subsidy in Nigeria. Policy Research Working Paper 7376. World Bank Group.

Umar, H. M., & Umar, M. S. (2013). An Assessment of the Direct Welfare Impact of Fuel Subsidy Reform in Nigeria. American Journal of Economics, 3(1), 23-26.




Samson Olayemi Sennuga1*, Ezekiel Oluwaseun Isola1, Joseph Bamidele2, Daniel Anone Ameh1 and Mudashir Adeola Olaitan1

1Department of Agricultural Extension and Rural Sociology, Faculty of Agriculture, University of Abuja, FCT, P.M.B. 117, Abuja, Nigeria.

2Waterside Campus, University Drive, Northampton NN1 5PH, United Kingdom.

*Corresponding author. Email: [email protected]


How to Cite this Article

Sennuga, S. O., Isola, E. O., Bamidele, J., Ameh, D. A. & Olaitan, M. A. (2024). Impact of Fuel Subsidy Removal on Agricultural Production among Smallholder Farmers in Niger State, Nigeria. Journal of Economics, Business Management and Administration, 5(2), 7-17.


Full-Text (PDF)

View / Download

 Back to Articles
 Back to Journals

Abbreviation: J. Econ. Bus. Manage. Admin.
ISSN: 2971-7736 (Online)
Start Year: 2020
Published Articles: