Fuel Subsidy Removal and Educational Wellbeing Among Urban Households in Lagos State, Nigeria

Abstract

This study examined the effects of fuel subsidy removal on the educational and socioeconomic wellbeing of urban households in Lagos State, Nigeria. Specifically, it investigated differences in welfare and educational outcomes across income groups and the relationship between household income and the ability to sustain education-related expenditure. A descriptive survey design was adopted, with data collected from 150 households using structured questionnaires. Data were analysed using descriptive statistics, independent t-tests, Pearson correlation, and mediation analysis. Findings revealed that fuel subsidy removal significantly increased household expenditure, leading to reductions in educational spending, particularly among low-income households. Independent t-test results indicated significant differences in educational and welfare outcomes between low- and high-income groups, while correlation analysis showed a strong positive relationship between household income and educational wellbeing. Mediation analysis further revealed that household income partially mediated the relationship between subsidy removal and educational outcomes. These findings underscore the critical role of income in safeguarding educational investment during macroeconomic shocks. The study recommends targeted cash transfers, school-related subsidies, and strengthened social protection mechanisms to mitigate the adverse impacts of subsidy reforms on vulnerable urban households. Overall, the study highlights the importance of linking macroeconomic policy with human capital development to promote equitable and sustainable social outcomes in Nigeria.