Volume 2, Issue 1, 2026

FUEL SUBSIDY REMOVAL AND EMPLOYEE PRODUCTIVITY IN NORTH CENTRAL NIGERIA’S PUBLIC SECTOR: A STUDY OF UNIVERSITY EMPLOYEES

Kadiri Kayode Ibrahim & Sufian Jelili Babatunde

Abstract

Fuel subsidy removal in Nigeria represents a major economic
reform with significant implications for public sector employees.
This study examined fuel subsidy removal on employee
productivity among university employees in North Central
Nigeria's public sector. The study was anchored on Conservation
of Resources Theory, with support from Equity Theory and Job
Demands-Resources Theory. A survey research design was
adopted, with a sample of 351 academic and non-academic staff
selected from public universities in North Central Nigeria using
multi-stage sampling. Data were collected through structured
questionnaires and analysed using descriptive statistics and
multiple regression analysis. The findings revealed that increased
commuting cost (? = -0.218, p < 0.05), reduced real income and
rising cost of living (? = -0.291, p < 0.05), and financial stress and
welfare pressure (? = -0.254, p < 0.05) had significant negative
effects on employee productivity. The regression model explained
54.5% of the variation in employee productivity. The study
concluded that fuel subsidy removal weakened punctuality,
attendance, task completion, work engagement and service
delivery quality among university employees. Recommendations
include provision of staff transport services, regular salary
reviews, cost-of-living adjustments, and improved welfare support
schemes to mitigate the productivity consequences of fuel subsidy
removal.

Keywords

Fuel Subsidy Removal, Employee Productivity, Commuting Cost, Cost of Living, Public Universities

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