A Research Proposal on Effect of Fuel Subsidy Removal on Rural Household Food Security and Livelihood in Ondo, Osun, and Ekiti States, Southwest Nigeria
CHAPTER ONE
Background to the Study
Fuel subsidy removal has been a contentious issue in Nigeria, impacting various sectors of the economy (Nkagu, 2022). The Southwest region, encompassing states like Ondo, Osun, and Ekiti, presents a unique context where the effects of such policy changes are keenly felt. Rural households in these states often rely on subsistence farming and face challenges related to food security and livelihood (Offer et al., 2022). Understanding the implications of fuel subsidy removal on these communities is crucial for effective policy formulation and intervention strategies.
One of the primary concerns with fuel subsidy removal is its impact on household income and livelihood strategies (Adeyemi et al., 2022). Rural households in Ondo, Osun, and Ekiti states may experience a decrease in income due to increased fuel prices and transportation costs (Ajayi, 2018). This can further exacerbate existing challenges related to poverty and economic vulnerability (Ezeh, 2022). Therefore, assessing the specific impacts on income and livelihood strategies is essential for understanding the full extent of the effects of subsidy removal.
Food security is another critical aspect affected by fuel subsidy removal in rural areas (Ajiboye, 2021). The increased cost of transportation and food production inputs can lead to higher food prices, impacting household food expenditures (Abdulkadir et al., 2020). This, coupled with potential income decreases, can directly affect the ability of rural households in Ondo, Osun, and Ekiti to access an adequate and nutritious diet (Iba, 2019). As a result, studying changes in food availability and access post-subsidy removal is crucial for addressing food security challenges.
Coping mechanisms play a vital role in mitigating the effects of fuel subsidy removal on food security and livelihood (Keeley, 2021). Rural households often adopt various strategies to navigate economic shocks, such as engaging in alternative income-generating activities or adjusting consumption patterns (Centre for Public Policy Alternatives, 2022). Understanding these coping mechanisms can provide insights into the resilience of rural communities in the face of policy changes and inform strategies to support them effectively (McGee, 2022).
Factors influencing vulnerability to fuel subsidy removal effects also deserve attention (Ijaiyi, 2021). Household characteristics such as income level, family size, and access to social support networks can influence how households are affected by subsidy removal policies (Norton & Foster, 2021). Vulnerable populations, including women-headed households or those with limited access to education and resources, may face heightened challenges and require targeted interventions (Regalema, 2020). Therefore, considering these factors is crucial for designing inclusive and effective policy responses.
In essence, the removal of fuel subsidies in Nigeria, particularly in the Southwest region encompassing Ondo, Osun, and Ekiti states, has significant implications for rural households’ food security and livelihood. It is imperative to understand the multifaceted impacts on income, food availability, coping mechanisms, and vulnerability factors to develop informed and targeted policy interventions (Bashir, 2022). By addressing these challenges comprehensively, policymakers can strive towards sustainable solutions that promote economic resilience and improve the well-being of rural communities in Nigeria.
Statement of Problem
The removal of fuel subsidies in Nigeria has sparked debates and raised concerns about its impact on various sectors, including rural households’ food security and livelihoods (Nkagu, 2022). While existing literature has highlighted general effects, there remains a gap in understanding the specific implications of fuel subsidy removal on rural communities in the Southwest region, particularly in states like Ondo, Osun, and Ekiti (Offer et al., 2022).
One of the primary gaps is the lack of detailed studies assessing the direct impact of fuel subsidy removal on household income and livelihood strategies in these specific states (Adeyemi et al., 2022). Understanding how rural households in Ondo, Osun, and Ekiti adapt to income changes and the strategies they employ to sustain their livelihoods post-subsidy removal is crucial for developing targeted interventions and support mechanisms.
Food security is another critical area that requires further exploration (Ajiboye, 2021). While it is known that subsidy removal can lead to increased food prices and impact household food expenditures, there is a need for detailed studies that quantify these effects and examine how they vary across different rural communities within the Southwest region (Abdulkadir et al., 2020).
Additionally, the effectiveness of coping mechanisms adopted by rural households in Ondo, Osun, and Ekiti states needs to be evaluated (Keeley, 2021). While some studies mention the presence of coping strategies, a deeper analysis of their efficacy, sustainability, and potential limitations is necessary to inform policy and intervention design (Centre for Public Policy Alternatives, 2022).
Lastly, understanding the factors that contribute to vulnerability among rural households in the context of fuel subsidy removal is essential (Ijaiyi, 2021). Factors such as household size, income level, access to social support networks, and gender dynamics can significantly influence how households are impacted by policy changes (Norton & Foster, 2021). Addressing these gaps in knowledge is crucial for developing evidence-based policies and interventions that effectively support rural households in navigating the challenges associated with fuel subsidy removal in Nigeria’s Southwest region.
Objectives of the Study
This study aims to achieve the following specific objectives within the context of Ondo, Osun, and Ekiti states:
- To assess the impact of fuel subsidy removal on household food expenditures in rural areas.
- To examine changes in household income and livelihood strategies following fuel subsidy removal.
- To analyze the effects of increased fuel prices on transportation costs for rural households.
- To assess changes in food availability and access for rural households post-subsidy removal.
- To investigate coping mechanisms adopted by rural households to mitigate the effects of fuel subsidy removal on food security.
- To identify factors influencing the vulnerability of rural households to fuel subsidy removal effects.
- To provide policy recommendations based on the study findings to improve rural household resilience to subsidy removal shocks.
Research Questions
The research questions guiding this study are as follows:
- How has the removal of fuel subsidies affected household food expenditures in rural areas of Ondo, Osun, and Ekiti states?
- What are the changes in household income and livelihood strategies following fuel subsidy removal?
- How have increased fuel prices impacted transportation costs for rural households in these states?
- What are the changes in food availability and access for rural households post-subsidy removal?
- What coping mechanisms do rural households in Ondo, Osun, and Ekiti states adopt to mitigate the effects of fuel subsidy removal on food security?
- What are the factors influencing the vulnerability of rural households in these states to fuel subsidy removal effects?
Research Hypotheses
Based on the research questions, the following hypotheses are proposed:
- The removal of fuel subsidies has not led to an increase in household food expenditures in rural areas of Ondo, Osun, and Ekiti states.
- Household income has not significantly decreased, and livelihood strategies have shifted due to fuel subsidy removal in these states.
- Increased fuel prices have not resulted in higher transportation costs for rural households in Ondo, Osun, and Ekiti.
- Food availability and access have not decreased for rural households in these states after the removal of fuel subsidies.
- Rural households in Ondo, Osun, and Ekiti states have not adopted various coping mechanisms to mitigate the effects of fuel subsidy removal on food security.
- Vulnerability to fuel subsidy removal effects in these states is not influenced by factors such as income level, household size, and access to alternative income sources.
Significance of the Study
This study is significant as it focuses on the specific impacts of fuel subsidy removal on rural households in Ondo, Osun, and Ekiti states, located in the Southwest region of Nigeria. The significance of this research lies in its potential to shed light on the unique challenges faced by these communities, thereby enabling policymakers to design targeted interventions that address the critical issues of food security and livelihood sustainability.
Rural areas in Ondo, Osun, and Ekiti states are characterized by a high dependency on subsistence farming and limited access to alternative income sources. The removal of fuel subsidies can have cascading effects on these communities, impacting their ability to afford necessities, access markets for agricultural produce, and sustain their livelihoods. Therefore, understanding the specific impacts of subsidy removal on income, expenditures, and livelihood strategies within these states is crucial for identifying areas of vulnerability and devising effective support measures.
By delving into the challenges faced by rural households post-subsidy removal, this study paves the way for informed policy decisions and targeted interventions. Policymakers armed with empirical data and insights from this research can tailor interventions to meet the unique needs of communities in Ondo, Osun, and Ekiti states. This could involve implementing safety net programs, agricultural support initiatives, or income-generating projects aimed at enhancing food security and economic resilience. Such interventions, grounded in evidence-based research, are more likely to yield positive outcomes and effectively address the root causes of vulnerability.
Furthermore, the findings of this study will contribute significantly to the existing body of literature on the effects of subsidy removal in Nigeria. While there is general knowledge about the macroeconomic impacts of subsidy removal, there is a dearth of specific, localized studies that explore its effects at the household and community levels, especially in rural areas. By filling this gap, the research not only adds nuance and depth to the understanding of subsidy removal effects but also provides a basis for comparative analyses with other regions or countries facing similar policy changes.
The actionable insights generated from this study hold immense value for policy and practice in Ondo, Osun, and Ekiti states. Policymakers can use the research findings as a roadmap for formulating evidence-based policies that promote food security, sustainable livelihoods, and economic empowerment in rural areas. Additionally, practitioners and development organizations can leverage these insights to design targeted interventions and programs that directly address the identified challenges faced by rural households post-subsidy removal. This collaborative approach, informed by research-driven data, can lead to more impactful and sustainable development outcomes in the region.
Scope of the Study
The study will be conducted in selected rural areas across Ondo, Osun, and Ekiti states in Southwest Nigeria. Data collection methods will include household surveys, interviews, and secondary data analysis related to food security indicators, income levels, transportation costs, and coping strategies. The study will target households directly impacted by fuel subsidy removal, ensuring a representative sample size for meaningful analysis and generalizable findings specific to these states.
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