A new study has revealed that about 63 per cent of Nigerians fell below the poverty line after the removal of petrol subsidy, highlighting the severe welfare impact of recent economic reforms.
The findings were presented at a policy dialogue organised by Agora Policy in Abuja, where stakeholders examined the effects of the Federal Government’s reform agenda. According to the research, Nigeria’s poverty rate rose sharply from about 49.8 per cent to roughly 63 per cent following the subsidy removal.
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The study, presented by Dr Mohammed Shuaibu of the University of Abuja, explained that the policy triggered widespread price increases across the economy, significantly reducing household purchasing power.
However, the introduction of social protection measures such as cash transfers helped slightly ease the impact, bringing the poverty rate down to about 56.2 per cent, although many households continued to face economic hardship.
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The research also found that low-income households were the most affected, with rising fuel, transport and electricity costs forcing many families to cut spending and adopt survival strategies.
President Bola Tinubu had announced the end of petrol subsidy during his inauguration on May 29, 2023, a move experts say was necessary to address economic distortions but has created significant short-term hardship for many Nigerians.
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