Assessing the impact of petroleum subsidy removal on human security in Nasarawa State, Nigeria: A perspective from transportation costs and unemployment

Abstract

The removal of petroleum subsidies in Nigeria, implemented in May 2023, represents one of the most consequential economic policy decisions in the nation's history, yet its human security implications at the sub-national level remain inadequately understood. This study examines the impact of fuel subsidy removal on transportation costs and unemployment as critical constructs of human security in Nasarawa State, Nigeria. The study engaged Human Security in this qualitative design relying on secondary data drawn from peer-reviewed journals, official reports, and documented materials specific to Nasarawa State. The findings reveal that subsidy removal triggered an exponential increase in petrol prices from approximately ₦184 to over ₦1,200 per litre, precipitating a more than 50 percent rise in transportation costs that has fundamentally restructured household expenditure patterns. Concurrently, the study establishes that subsidy removal has generated significant unemployment, with the informal sector employing approximately 93 percent of the state's workforce bearing disproportionate burdens as small and medium enterprises downsize or close entirely due to heightened operational costs, while transportation sector workers face diminishe8d incomes as passenger volumes decline. The study concludes that transportation costs function as a critical transmission mechanism through which macroeconomic policy translates into household-level insecurity, while unemployment constitutes not merely an economic indicator but a fundamental assault on human dignity, social stability, and community cohesion. It recommends the urgent implementation of a comprehensive public transportation intervention programme with subsidised mass transit systems across all local government areas, alongside a targeted job creation and livelihood support strategy prioritising the informal sector through micro-credit schemes, skills acquisition programmes, and special welfare provisions for disproportionately affected transportation workers.