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IJBESM | International Journal of Business, Economics and Strategic Management
Published: August 30, 2026 | Vol. 1 Issue 3 | ISSN: 3139-5929
Research Article

Fuel Subsidy Removal and Its Effect on the Cost of Living of Students: A Study of Nnamdi Azikiwe University, Awka, Anambra State

Dr Amalachukwu Chijindu Ananwude1 1✉,
Dr Ikenna Justin Emejulu22
1 1Department of Banking and Finance, Nnamdi Azikiwe University, P.M.B 5025, Awka, Anambra State, Nigeria.
2 2Department of Securities and Investment Management, Nnamdi Azikiwe University, P.M. B 5025, Awka, Anambra State, Nigeria.
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Abstract

Abstract Fundamentally, how fuel subsidy removal affects the cost of living of students in Nnamdi Azikiwe University, Awka was the fulcrum of this study. Specifically, the effect of fuel subsidy removal on transportation fare, foodstuffs, house rent, and price of stationeries’ was ascertained. This study is pursued within the premises of the cost-push inflation and transport-cost transmission mechanisms postulations. This study employed descriptive survey research design, using primary data obtained from questionnaires shared to students of the Awka Campus of the University. The total population of the study was three hundred (300) respondents. The Taro Yammne formula for sample size determination was used to deduce the sample size of the study to be one hundred and fifty (150). The Ordinary Least Square (OLS) was adopted to analyze the data gotten from the respondents. The findings revealed that fuel subsidy removal has significant effect on transportation fare, foodstuffs, house rent, and stationeries. The study concluded that cost of living of students of Azikiwe University, Awka, is significantly affected by fuel subsidy removal. In view of the findings of this study, the Federal Government should prioritize providing palliatives for the transportation sector to alleviate the impact of the fuel subsidy removal. This can be done through reducing passenger fares, addressing excessive taxes on public transport operators, and implementing mass transportation solutions. Embracing compressed natural gas (CNG) as an alternative fuel and establishing the necessary infrastructure can help reduce the cost of fuel and subsequently decrease in cost of living.
Keywords: Fuel subsidy, transportation fare, foodstuffs, house rent, and price of stationeries’.

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🔓 Open Access | Published by AGSIR Publisher. This article is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).
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