JOURNAL OF ACCOUNTING, FINANCE & MANAGEMENT DISCOVERY WUKARI

The broad objective of this study is to ascertain the effect of fuel subsidy removal policy on the consumption pattern of civil servants in Abia State, Nigeria. The study adopted a survey design method. The population of this study comprised 469 management and staff of four ministries in Abia State Civil Service. Taro Yamane’s formula for sample size determination was used to obtain a sample size of 216. Convenience sampling was used to administer copies of the questionnaire to the respondents. Test of hypotheses in the study was done using simple regression model. All analyses were done through the use of the Statistical Package for the Social Sciences (SPSS) version 25.0. Findings revealed that fuel subsidy removal has positive and significant effect on cost of living of civil servants in Abia State, Nigeria. Regression results further revealed that fuel subsidy removal policy has negative and significant effect on income level of civil servants in Abia State, Nigeria. Lastly, it was found that fuel subsidy removal has negative and significant effect on savings status of civil servants in Abia State, Nigeria. The study recommended amongst that government should develop policies and programs such as social safety nets or targeted subsidies for the vulnerable populations that are aimed at mitigating the negative effects of the current subsidy removal.