EFFECT OF FUEL SUBSIDY REMOVAL ON THE SMALL – SCALE FARMERS IN IBARAPA CENTRAL LOCAL GOVERMENT, IGBOORA, OYO STATE

Abstract

The removal of fuel subsidies has been a contentious issue in Nigeria, with proponents arguing that it will lead to increase economy efficiency and opponents arguing that it leads to increase poverty and inequality. This study examined the impact of fuel subsidy removal on small – scale farmers in Ibarapa Central Local Government, Igboora, Oyo State. A survey of 100 small – scale farmers was conducted, and the data was analyzed using descriptive and inferential statistics. The results showed that the removal of fuel subsidies had a significant negative impact on the farming activities of small – scale farmers, leading to increased production cost, reduced agricultural production, and reduced income. The study recommended that policymakers should consider the potential impacts of fuel subsidy removal on small – scale farmers and the agricultural sector as a whole. Alternative energy sources, subsidies on agricultural inputs, and training and extension services were also recommended to mitigate the negative impacts of fuel subsidy removal on small – scale farmers.

Keywords:

Fuel subsidy removal, Small – scale farmers, agricultural production, income, Nigeria.