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Fuel Subsidy Removal, Poverty and Declining Relevance of Organized Labour in Nigeria

This paper explores the relationship between fuel subsidy removal, poverty and the declining relevance of the organized labour as the primary watchdog in Nigeria. The fuel subsidy removal policy has been a subject of intense debate and has had far-reaching consequences on the socio-economic landscape of the country. While proponents argue that subsidy removal reallocates funds toward critical developmental initiatives, opponents highlight the disproportionate burden it places on low-income households, exacerbating poverty and widening inequality. This study critically examines the immediate and long-term implications of subsidy removal, particularly its effects on the cost of living and access to essential goods and services. Additionally, the paper examines the responses of trade unions that are historically pivotal in championing workers’ rights by scrutinizing their effectiveness amidst political and economic shifts. This research aims to contribute to the broader discourse on economic reforms, poverty alleviation, and labour advocacy in Nigeria, offering insights for policymakers, labour organizations, and academics. The study utilizes a qualitative approach, integrating data from scholarly articles, reports, newspapers and other secondary sources. Content analysis was used to provide an in-depth analysis of the complex interplay between policy decisions and societal outcomes. The paper adopted the concepts of Price Elasticity of Demand and Declining Trade Union Influence to explain the relationship between fuel subsidy removal, poverty, and the declining influence of organised labour in Nigeria. The paper concludes that there is a relationship between fuel subsidy removal, poverty, and declining relevance of trade unionism in Nigeria. The paper therefore recommends the need for inclusive policy frameworks that prioritize social safety nets to mitigate the adverse effects of fuel subsidy removal on vulnerable populations.