Effect of Fuel Subsidy Removal on the Distribution of Farm Produce in South East, Nigeria

• Post by: birpo
• August 16, 2026
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Nwachukwu, Samuel Obinna ¹ & Prof. A. O. Okonkwo ²

Abstract         

The oil industry in Nigeria is very essential to the nation, as it impacts significantly on every sector of the economy, including the distribution of goods and services. Fuel subsidy removal, therefore, has direct effects on every individual and organization in various ways. However, the interest of this study is to examine the extent to which fuel subsidy removal affects the distribution of farm produce in South East, Nigeria. Primary sources of data, such as questionnaires, were adopted to gather information for the research, and the study is rooted in inexhaustible resource theory to justify this concern. The study revealed as follows: that fuel subsidy removal negatively affects transport services in the distribution of farm produce in South East, Nigeria; that due to the increase in the pump price of petroleum products as a result of subsidy removal, the prices of farm produce have gone up; that fuel subsidy removal has caused an astronomical increase in the price of transport fares in the distribution of farm produce in South East, Nigeria; and that fuel subsidy removal has negatively affected the supply of farm produce in South East, Nigeria. It was recommended as follows: that government should introduce public transport services to cushion the effect of the shortage of transport services being offered by private transport investors; that it has become imperative to establish a price control board to checkmate the arbitrary hike in the price of farm produce in the market; that government should subsidize the prices of acquiring other means of transportation, such as electric trains, donkeys, wheelbarrows, motorcycles, keke napep, and bicycles, to evacuate farm produce; and that government should use various government marketing companies to buy these farm produce and store them at silos for future use.

Keywords: Fuel Subsidy Removal, Distribution of Farm Produce, Transportation Services, Transport Fares, Farm Produce Availability.

Cite: Nwachukwu S. O. & Okonkwo A. O. (2026). Effect of Fuel Subsidy Removal on the Distribution of Farm Produce in South East, Nigeria. Global Journal of Business Management and Leadership,4 (3), 63-79. https://doi.org/10.5281/zenodo.21969222