PERCEIVED EEFECT OF FUEL SUBSIDY REMOVAL ON THE LIVELIHOOD ACTIVITIES OF RURAL HOUSEHOLDS IN SOUTHERN SENATORIAL DISTRICT OF BENUE STATE

The study examined the “Impact of fuel subsidy removal on the livelihood activities of
Households in Southern Senatorial zone of Benue State. The specific objectives of the study
encompassed the livelihood activities of the rural households, the impact of subsidy removal on
the households and the challenges faced by rural households. A total of 120 households were
selected through a simple random sampling method. Data were collected with the aid of a
structured questionnaire and analysed using descriptive statistics and chi-square statistics. The
study found fuel subsidy removal impacted transportation, food, medication, farm input, yield,
income and many other aspects. Also, farmers were challenged by the high cost of inputs, low
level of education, poor access to credit and roads, increased activities of banditry and many
more. It was recommended that farmers' cooperatives or associations can play a significant role
in organising themselves to better access credit or loans from financial institutions for their
members at a low interest rate. More so, rural farmers should diversify their livelihood in areas
of non-agriculture so that during off-farming seasons they can derive income from other means
for survival. Also, the government can make inputs such as fertilisers, insecticides and
herbicides affordable to lessen the impact of subsidy removal on rural farmers in the study area.