Fuel Subsidy Removal and Household Expenditure Pattern of Public Servants in Akwa Ibom State: A Study of Akwa Ibom State University

The removal of fuel subsidies in Nigeria has significant economic implications, particularly on household expenditure, with public servants being one of the most affected groups. The aim of this research was to strategically assess fuel subsidy removal and household expenditure pattern of public servants in Akwa Ibom state, a case study of Akwa Ibom State University. Descriptive survey design was adopted for the study. The population of this study consisted of 996 members of both Academic and Non-Academic staff of Akwa Ibom State University and random sampling technique was used to select 277 respondents. Both primary and secondary source of data was utilized for the study. It was established in the study that the highest-rated impact is the increase in the cost of staple foods (Mean = 4.34), followed closely by the reduction in the quantity of food purchased (Mean = 4.30). The highest-rated impact is the reduction in the ability to afford medications (Mean = 4.29), followed closely by the increase in hospital visit costs (Mean = 4.25). The data indicate that many staff members struggle with the rising expenses of medical care, leading to a decline in regular check-ups and specialist visits. The findings highlight the financial strain faced by households, necessitating adjustments in their food consumption patterns due to rising costs. The study concluded that fuel subsidy affected the accessibility of critical services, including healthcare and education, following subsidy removal and finally, critical services such as healthcare and education were affected due to subsidy removal. Alternatively, one of the recommendations made, along with others, is that government should replace the blanket fuel subsidy with targeted programs for low-income earners, including public servants, to cushion the economic effects of increased fuel prices.