Impacts of Fuel Subsidy Removal on Fish Farming and Livelihoods in Odogbolu, Nigeria

Abstract

This study assessed the impact of fuel subsidy removal on fish production and the livelihoods of fish farmers in Odogbolu Local Government Area (LGA) of Ogun State, Nigeria. Following the fuel subsidy removal, fuel prices surged, which significantly increased production costs for fish farmers. This study adopted survey design, and a simple random sampling of 100 fish farmers from two fishing communities, Eriwe Fish Village and Okun-Owa. The data were collected using a structured questionnaire and analyzed using descriptive statistics. Results showed that 76% of respondents were male, with an average age of 37 years, and 74% operated earthen ponds. Regression analysis revealed a significant negative relationship between rising fuel prices and key variables affecting fish production. Specifically, increased operational costs (β = -0.339), reduced profitability (β = -0.152), and farm expansion (β = -0.661) all led to decreased income, with the R² value of 0.660 indicating that 66% of the variation in fish farmer income was explained by these factors. Budgetary analysis further indicated that the average net income dropped to ₦9,043.54, down from previous levels, highlighting the financial strain placed on fish farmers. In addition, 100% of respondents reported adverse effects on their economic livelihoods, with significant declines in the ability to afford education, healthcare, and social activities. The study emphasized that, despite the profitability index of 0.20, the long-term effects of fuel price hikes may exacerbate food insecurity. The study concludes that subsidy removal should be gradual and transparent, with measures in place to stabilize fuel prices. This will help protect rural livelihoods and support the sustainability of fish farming