ABSTRACT

The study examined the Challenges of fuel subsidy removal on the standard of living of families in Ikwuano LGA ofAbia State. The specific objectives ofthe study were to Examine the Impact ofthe recent fuel subsidy removal on the socioeconomic realities, finances and the standard of living of the families, while further efforts were made to explore the coping strategies being implemented by each family as a result ofthe recent fuel subsidy removal in the study area, while four (4) research questions guided this study. The study adopted descriptive survey research design and the population of this study encompasses all the households in the study area. The purposive sampling method was used for the study and the sample size was 100 respondents from three communities in Ikwuano LGA of Abia State capturing both households made up from rural as well as urban settlements. Primary data was used to solicit data from our respondents with the aid of a well-structured questionnaire and was analyzed using Mean and Standard deviation. Some ofthe major findings revealed that the fuel subsidy removal has led to increased living expenses, financial stress, and challenges in meeting basic needs due to the hike brought about in prices of goods and services Enmi'i.- are therefore having to adapt by adjusting spending habits, seeking additional income, and even accessing support from community organizations, further amplifying the economic challenges faced by families and decreasing their standards ofliving. These findings therefore offered valuable insights for individual and family-level strategies in navigating economic changes, emphasizing the need for financial literacy and practical measures to improve overall financial well-being and standard ofliving ofthe families. The study therefore recommended that given the significant negative impact of the fuel subsidy removal on families' socioeconomic realities, policymakers should consider implementing targeted subsidy programs for essential goods and services. This can include subsidizing transportation costs for low-incomc families, offering price controls on essential goods, and providing financial assistance to households in rural areas to mitigate the increased cost of living and ensure equitable access to necessities like education and healthcare.