Cite this article as: Ezeola K. N., (2026). Rethinking Implications of Fuel Subsidy Removal: The Women Entrepreneur Experiences in Abakaliki, Ebonyi State. Zamfara International Journal of Humanities, 4(2), 30-35. www.doi.org/10.36349/zamijoh.2026.v04i02.003.
By
Kindness Nkasiobi
Ezeola, Ph.D
1Department of
Marketing, Federal College of Agriculture Ishiagu, Ebonyi State
Abstract: This study has examined the rethinking
implications of fuel subsidy removal with specific reference to women
entrepreneur experiences in Abakaliki, Ebonyi State, Nigeria. With the
assumption of democratic power and leadership of Nigeria in 2023, the fundamental
assignment of the President Bola Ahmed Tinubu debut speech was the declaration
on fuel subsidy removal, premised on regularization of Nigeria’s economy. It
also essentially claimed at mitigating the sophisticated corruption especially
with its debilitating effects in the formal sector of oil marketing, and to
some extent to get rid of poverty ridden in all sectors of the Nigeria economy.
Illustratively, the removal of fuel subsidy in 2023 has lethal implications on
the socio-economic and political life of women entrepreneurs in Abakaliki,
Ebonyi State, it results into the hike in prices of agricultural products for
consumers. This is because large proportion of women entrepreneurs in Abakaliki
performs dual responsibilities as farmers and marketers. Other included
implication of goods and services that has direct links with agricultural
production and selling of goods by women entrepreneurs in the study area.
However, the devastating implications are equally evident, and most obvious in
the short supplies of goods and services to meet increasing population needs in
the study area. This dire action and consequences ultimately were the
culmination of the hikes of agricultural produces that resulted to paradigm
shifts in market supply and demand. However, the study recommends an outright
reverse in fuel price to enable the average Nigeria population to procure it;
empowerment of women through small scale long term-loan; removal excruciating
tax; and improving on government policies towards regulation of fuel price
through efficient control. Methodologically, the study employed survey
examination, and adoption of secondary sources by using synthesized pattern of
qualitative data interpretation.
Keywords: Implications, Fuel
Subsidy, Women, Entrepreneur, Abakaliki.
Introduction
The overriding concerns of
this paper is an investigation into the implications of fuel subsidy removal
with specific reference to women entrepreneurs in Abakaliki, Ebonyi State. With
the assumption of democratic power and mantle of leadership of Nigeria in 2023,
the fundamental task of the President Bola Ahmed Tinubu debut speech was the
declaration of oil subsidy removal, premised on regularization of Nigeria’s
economy. Though, it also essentially claimed to mitigate corruption and its
debilitating in the formal sector of oil marketing, and to some extent to
extenuate poverty ridden in all sectors of the Nigeria economy. This decision
seemed to have serious implications, particularly in the agricultural sector
especially as it affect women entrepreneurs in Abakaliki in Ebonyi State.
According to Kindness (2023) agricultural sector production in transforming the
economic growth of any countrycannot be overemphasized given that, it is a
source of food for man, and animals and a provider of raw materials needed for
the industrial sector for the production of goods and services. It is apposite
to note that fuel subsidy removal has lethal implications on the socio-economic
and political life of women entrepreneur in Abakaliki, Ebonyi State, this
results into the hike in prices of agricultural products for consumers. The
devastating effects are equally evident in reduction, and most obviously in the
short supplies of goods and services to meet increasing population needs, which
ultimately was the culmination in hikes in agricultural produce.
Albeit, it is worthy of
note that agricultural practices seemed to have been the major economic matrix
of the rural communities of the people as well as other economic engagements
and activities of which Abakaliki women are noted. This is largely because the
predominant women play duo purposes as farmers of large scales producers, and
as well as sales their produces. These roles therefore outrightly demonstrated
the spectacular roles played by Abakaliki women in sustaining the needs through
the mechanism of demand and supply mechanism as the bane of all market economy
(Emmanuel, 2024).
Again, it is worthy of
note that the discovery of oil in 1956 at Oloibiri in the present Bayelsa
State, and its explorations and exploitations was a blessing in disguise to
Nigerians and its government with numbers of infrastructural developments
recorded. The oil therefore subsequently became a curse that undermined the
growth and development of the country with overbearing dominance on its
exploration and exploitation at the detriment of agricultural production in the
State, and Nigeria as a whole. On the other hand, the removal of oil subsidy by
the current democratic administration from ab initio poised for radical spike
on goods and services, with difficulties for Nigerians especially the
downtrodden severely affected. This scoundrel action by Nigeria government
grossly accelerated the prices of agricultural implements, seeds and seedlings,
insecticides, fertilizers and labours among others. However, the colossal
disasters triggered the diminishing roles of the Abakaliki women entrepreneurs
in Ebonyi State from 2023 to 2024 particularly in their duo purposes as farmers
and sellers of cultivated goods. It is against the above prism that the paper
explored a ‘Rethinking Implications on Oil Subsidy Removal: The Women
Entrepreneur Experiences in Abakaliki, Ebonyi State’.
Conceptual Framework: Fuel Subsidy and Women
Entrepreneurs
Fuel subsidy could be
understood as a fraction of the price that consumers are supposed to pay to
enjoy the use of petroleum products paid by government to ease the inherent
price burdens and challenges. The Nigerian government removed part of this
subsidy in 2023 claiming that prices paid by Nigerians to use petroleum
products are less than what they should pay, particularly when benchmarked
against the prices in the international market (Presidential Speech, 2023). The
removal of oil subsidy was meant to provide necessary impetus for the Nigerian
economy to find its rhythm. The government argued that such subsidy removal
savings can be better invested in refineries, roads and major infrastructural
projects which in the longterm will assiduously ensure sustainable business
development and wealth generation for her citizens (Ibid, 2023).
In addition, oil subsidies
are a government policy to provides financial assistance to reduce the cost of
fuel for consumers. This is typically done by selling fuel at a price lower
than the market rate, with the government covering the price difference through
subsidies subvention. The main goals of oil subsidies are to make fuel more
affordable for citizens and to stabilize domestic prices. However, fuel
subsidies have serious devastating effects on economic, environmental, and
fiscal policies, as they often lead to increased government spending with the
potential strength to encourage the consumption of fuel.
Fuel Subsidy Removal
Fuel Subsidy Removal:
there are limited definitions as to what subsidy removal connote. But few
scholars like Esekpaet al., (2024)
have make effort to define subsidy removal as a process in which government
stops providing aid/funds support to reduce the cost of fuel for consumer. In
order wordsubsidy removal is an antonym of subsidy. Removal of subsidy means
the government are no longer willing and interested in paying any amount of
money/fund to reduce cost of production and consumer of fuel. The justification
for subsidy removal heavily lies on the rationale that it reduces government
spending, promote effective utility of resources, it leads to increase in fuel
prices, it helps in government saving and allocate resource to other important
areas such as reads, electricity, health service, education, industrial and
economic reforms fuel subsidy removal can also connote the total ending of
government financial aid for fuel, causing geometrical price increase to market
product (Esekpaet al., 2024). For
Zinami (2024), fuel subsidy removal refers to the cessation of government
financial support for fuel, resulting in price increases to market levels. The
decision by the government to stop funding fuel subsidy is known as fuel
subsidy removal and consequently lead to increase on fuel prices. Thus, fuel
subsidy removal is the process of removing or reducing government subsidies
that keep fuel prices (such as gasoline or diesel) lower than their market
value.
The Women Entrepreneur
A women entrepreneur is a
confident, innovative and creative women capable of achieving self-economic
independence individually or in collaboration, generates employment
opportunities for others through initiating, establishing and operating the
enterprise by keeping pace with her personal, family and social life. Women
entrepreneur may be defined as a women or group of women who initiate,
organize, and run a business enterprise. As the concern of this study,
Abakaliki women are those that engages in innovation, imitation or adoption of
business activity for sustenance of living are called “women entrepreneurs”. In
other words, woman entrepreneur is seen as a confident, innovative and creative
woman capable of achieving selfeconomic independence individually or in
collaboration, generates employment opportunity for others through initiating,
establishing and running the enterprise by keeping pace with her personal,
family and social life.
Interface Between Oil Subsidy Removal and Women
Entrepreneurs
The removal of oil subsidy
has led to an immediate and noticeable increase in operational costs for women
entrepreneur impacting their ability to remain in business. One of the most
obvious effects of the oil subsidy removal and price hike is the rise in
transportation costs especially from the rural communities to consumption in
urban region of Ebonyi State and beyond. However, women entrepreneur heavily
relies on transportation services for conveyance of goods and services, both
for procurement and distribution in order to maximise its profits that will be
recycling for business. With the increased in fuel prices in 2023 with
government policy, transportation costs have surged, resulting in higher
expenses for businesses. This burden is often transferred to the consumers
through increased prices of goods and services, this further affect their
purchasing power and capacity for agricultural producers and consumers.
Furthermore, quite a
number of women entrepreneurs rely heavily on generators to sustain their
operations due to the unstable and unreliable power supply in Abakaliki and the
country at large. Besides, the exorbitant increased in fuel prices directly affect
the cost of running these generators, leading to higher overheads for
businesses. For instance, the entrepreneur already struggling to meet
operational costs, the removal of oil subsidy has added humongous financial
strains that decisively inhibits women entrepreneurs’ survival, growth and
advancement socio-economically in the study area.
Implications on Removal of Oil Subsidy: The Women
Entrepreneurs in Abakaliki, Ebonyi State
It is axiom to note that
from the removal of oil subsidies with the assumption of democratic power in
2023, women entrepreneur in Abakiliki, Ebonyi State face a direct impact on
transportation costs. Fundamentally, higher fuel prices result in severe increased
expenses for transporting goods and materials, directly affecting profit
margins and pricing strategies. It should be noted that in Abakaliki in Ebonyi
State, Nigeria, the price of petrol is considered a cogent driver of the cost
of human living and existence, as it is used by all businesses, including
businesses and many households, given theunstable electricity supply. It is
worthy of note that, any increase in fuel price could directly and immediately
impact on the prices of goods and services across the country. In the study
area, when petrol prices suddenly increase, meanwhile businesses tend to
increase their prices to cover the increased cost of operation, which has the
potential strength to lead to higher prices for consumers. This insidious
action makes it more difficult and subtle for Abakaliki people to afford basic
necessities culminating into a serious decrease in the standard of living and
contribute to poverty and inequality (Fieldwork, 2024).The exponential rise in
transportation costs arising from increased in petrol price birthed by oil
subsidy removal often cascades into a broader inflationary trend that makes
life unbearable for people. As fuel prices surge, the cost of production increases
simultaneously with people’s living condition, leading to reduced purchasing
power for consumers. Women entrepreneur in Abakiliki in Ebonyi State
consequently faced reduce demand for their products and services, affecting
overall sales and as well undermining the survival of their businesses.
The removal of the fuel
subsidy across Nigeria States has led to a rise in the price of petrol from a
subsidized price which its devastation hinged in undermining market women in
Abakaliki women
entrepreneurs’ economic activities. The implication is that the price of most
consumers and industrial goods, which are produced or transported with the use
of petrol, has increased sharply. For instance, the cost of bread has
increased, and the cost of local transportation has also increased, making it
expensive to afford for poor individuals and lowincome earners. The compound
effects on oil subsidy removal are also felt by both the riches, but more
profound among poor population of which the Abakaliki women could not be
exonerated. Unrestricted the poor always suffer the most through a significant
reduction in their purchasing power that has negative consequences on producers
and consumers especially from 2023 to 2025.
In relation to Abakaliki
women entrepreneur, the agricultural sector has suffered ugly situations
ranging from neglect after the discovery of oil which led to the slow pace of
economic development in Nigeria. The performance of the sector was also undermined
by disincentives created by the macro-economic environment, poor market
structure, poor road networks are still very high as most of the farms are
inaccessible, thereby making transportation of farm produce very difficult.
Even with the removal of oil subsidy in 2023 with the assumption of power, the
infrastructure development has not increased to meet up with the current
agricultural challenges in Abakaliki with dare consequences on markets women in
the study area. The country’s action and policy, resulting in stagnation of
agricultural processes and logistical nightmares and access to markets has
remained a recurring headache making the idea of farming very unattractive to
most people. The worst aspect of it all is insecurity that is ravaging all parts
of the country especially in Abakaliki as its impact on agricultural production
has led to a shortage of food production in Ebonyi State. In fact, Abakaliki
women entrepreneurs who serves as farmers producer and sellers have been forced
out from going to farms due to instabilities that ravage the area.
The subsidy removal has
also triggered inflationary pressures across Abakaliki, with the prices of
goods and services rising steadily. Women entrepreneurs struggle to cope as the
cost of raw materials, packaging, and household essentials increases. Inflation
undermines the profits, erodes working capital, and makes business survival
increasingly difficult. Household budgets are stretched as rising food, rent,
and healthcare costs compete with business expenses. Many women divert business
capital to sustain family needs, thereby stalling growth or risking closure.
Persistent energy and power shortages compound the crisis. Since most women-led
enterprises rely on generators, the surge in fuel prices has drastically raised
operational expenses. Some entrepreneurs shorten business hours or raise prices
in order to survive, but both measures reduce competitiveness. At the same
time, shrinking customer demand resulting from weakened purchasing power
reduces sales, as families cut down their market baskets, delay purchases, or
forgo non-essential services like salon visits.
Erosion of working capital
has also become widespread. Restocking requires larger sums, while access to
affordable credit is limited. Women traders struggle to repay loans and
adequately restock, leading to financial strain and, in some cases, indebtedness.
The outcome has been increased poverty and vulnerability. With most women in
Abakaliki operating fragile nano or micro-enterprises, higher costs without
corresponding income have pushed many closer to economic insecurity. The
gendered burden of care makes matters worse, as women juggle both
entrepreneurial and caregiving responsibilities, often sacrificing business
reinvestment for family survival.
These difficulties have
forced many women entrepreneurs into business closures or informality. Some
shut down their shops entirely, while others shift to petty trading with lower
risks and minimal overheads, weakening the entrepreneurial base of Abakaliki.
This fact highlights the deep inequalities in policy impact. Larger businesses
and male-dominated enterprises adapt more easily, absorbing rising fuel costs
with greater capital and alternative energy sources, but women-led
nano-businesses suffer disproportionately. Without targeted support, subsidy
removal widens both gender and income disparities in Ebonyi State.
Recommendations
While the result of this
study and our findings indicate serious implications on fuel subsidy removal
and its effects on women entrepreneurs in Abakaliki, recommendations were
therefore profound. There is a sheer need from the part of the government to revisit
and reverse on the oil subsidy removal to ensure that the economy grows at a
higher rate than the low performance of small and medium scale business
enterprises, this will ensure that the increasing demand of goods and services
arising from the high patronage is accurately met. Government in this vein
should also have a staunch move on policies that will pave ways for short- and
longterm interest free loans to women entrepreneur across the state as well as
ensuring the improvement of social amenities with which the country will indeed
lead to their rapid growth and development.
Government within their
reach should also sensitize our domestic refineries so that more petroleum
products could be produced in order to reduce Nigeria's dependence on imported
fuel which will consequently increase employment and the development of critical
public sectors of the economy. Reversal of oil subsidies by the government
should also increase consumer spending which sometimes brings an economy out of
a recession or depression therein consumers can live better and afford their
rents and other utilities this will keep the economy functioning during this
challenging time by the average citizens. Government should provide palliatives
and other economic relief programs that house human capital development to
cushion the adverse effect on individuals and businesses.
In addition, price
stabilization mechanisms and inflation control measures should be implemented,
particularly to protect the agricultural sector. Affordable credit schemes
tailored to women entrepreneurs are essential to rebuild working capital and
strengthen their capacity to withstand shocks. Social protection programs such
as cash transfers, food subsidies, and business grants should be targeted at
vulnerable groups, especially women traders. Training and marketaccess
initiatives that enhance entrepreneurial skills and digital integration will
also empower women to diversify income and adapt more effectively to economic
volatility.
Conclusion
Entrepreneurship among
Abakaliki women, no doubt improves the nation in general and of the family in
particular. Women today are more willing to take up activities that once
considered the preserve of men, and have proved beyond reasonable doubt women
dispositions are second to no one with respect to their huge contribution to
the growth of the economy. Women entrepreneurship must be molded properly with
entrepreneurial traits and skill to meet the changes in trends, challenging
global markets and also be competent enough on the scale of world economic
proliferation in a bid to sustain and strive for excellence in the
entrepreneurial arena especially in Nigeria.
The removal of fuel
subsidies, however, has disrupted women’s economic activities in Abakaliki,
Ebonyi State, leading to inflation, reduced living standards, energy crises,
weak demand, and business closures. Women entrepreneurs, though resilient,
remain vulnerable to policy shocks. For Nigeria’s economic reforms to be
sustainable, women entrepreneurs must be supported with targeted interventions.
Policies must be rethought to balance fiscal reforms with social protection,
ensuring that the gains of subsidy removal do not come at the expense of
grassroots livelihoods
References
1.
Adagunodo, M. (2022). The
Effect of Oil Receipts and Fuel Subsidy Payments on the Current
2.
Account Deficit in Nigeria
and Venezuela. Annals of Spiru Haret University. Economic Series, 22(1),
137-152. https://doi.org/10.26458/2238
3.
Adeniran, A. O. (2016).
Effects of Fuel Subsidy on Transport Costs and Transport Rates in Nigeria.Journal of Energy Technologies and
Policy, 6(11), 1-9.
4.
Adeoti, A., Taiwo, O.,
& Fatoki, O. (2016). Compensation mechanisms for fuel subsidy removal
inNigeria.InternationalInstituteforSustainableDevelopment.
https://doi.org/10.3319/IISD.RG.2016
5.
Akinyemi, O., Alege, P. O.,
Ajayi, O. O., & Okodua, H. (2017). Energy pricing policy and environmental
quality in Nigeria: A dynamic computable general equilibrium approach.International Journal of Energy
Economics and Policy, 7(1), 268-276.
6.
Esekpa, O.A, Ekarika, W.A
& Njama, G.J. (2024). Economic Implications of Fuel Subsidy Removal in
Nigeria: Challenges and Prospects.Journal
of Public Administration, Policy and Governance Research (JPAPGR),2
(3), https://jpapr.com/index.php/research.
7.
Khanka, S. S., & Chand,
S. (2008).Entrepreneurial
Development. Company Ltd, New Delhi, pp. 52-63.
8.
Okongwu, C. J., &
Imoisi, S. E. (2022). Removal of Petrol Subsidy: Legal Implications for the
9.
Nigerian Economy. Nnamdi
Azikiwe University,Journal
of International Law and Jurisprudence, 13(2), 135-139.
10. Ovaga, O. H., & Okechukwu, M. E. (2022). Subsidy in the
downstream oil sector and the fate of the masses in Nigeria.Kuwait Chapter of Arabian Journal of
Business and Management Review, 1(6), 1-20.
11. Ozuma, S. O. (2017). Impact of Fuel Subsidy Removal on Small and
Medium Scale Enterprises (SMEs) in Otukpo Local Government Area, Benue State.
Department of Sociology, Benue State University, Makurdi, Benue State-Nigeria.
12. Rajendran, N. (2003). Problem and Prospects of Women
Entrepreneurs.
13. Raji, A. (2018). Fuel subsidy removal and the lives of rural
dwellers in Nigeria (Doctoral dissertation), Department of Sociology, Faculty
of Social Sciences, University of Ilorin, Ilorin, Nigeria.
14. Zinami I.F. (2024). Fuel Subsidy Removal and Its Implications on the Economic Rights of Nigerians, NAULJILI, 15, (2).
0 Comments