Effect of Fuel Subsidy Removal on Tomatoes Production in Garun Mallam Local Government Area, Kano State, Nigeria

Abstract

The study examined the socio-economic impact of the fuel subsidy removal on food scarcity in
Nigeria, with a specific focus on tomatoes production in Garun Mallam Local Government Area,
Kano. The research aimed to assess how the removal of fuel subsidies has affected tomatoes
production, analyze its socio-economic consequences, and identify potential solutions to mitigate
the negative effects. The study relied on the Price Pass-Through Theory as its theoretical
framework and adopted a survey method, using questionnaires and in-depth interview as the
main instrument for data collection. The study found that the fuel subsidy removal significantly
increased production and transportation costs for tomatoes farmers. Higher fuel prices led to
greater expenses in transporting tomatoes to both local and regional markets, which resulted in
reduced supply and fewer deliveries. The study also highlighted a decline in the volume of
tomatoes available for sale as farmers faced challenges in meeting market demand, due to the
higher costs of production and transportation. This ultimately impacted the profitability and
productivity of tomatoes farmers. The study contributes to knowledge by highlighting the
interconnectedness of fuel prices, agricultural productivity, and food security in Nigeria. It also
provides insights into the challenges faced by farmers in rural areas, particularly in adapting to
the economic implications of national policy changes. The study recommends that the Nigerian
government provide targeted subsidies for essential agricultural inputs, such as fertilizers, seeds,
and irrigation equipment, to help mitigate the rising production costs caused by the fuel subsidy
removal among other recommendations.