Fuel subsidy removal and household health expenditures: A study of coping strategies in sub-urban areas of Makurdi, Benue State, Nigeria

Abstract

This study examined the impact of fuel subsidy removal on household health expenditure and coping strategies among residents of sub-urban communities in Makurdi Local Government Area, Benue State, Nigeria. Focusing on adults and household heads in Tse-Ikula, Apir, Tyo Mu, and Kanshio, the research adopts a descriptive and analytical design with a quantitative approach. A total of 300 respondents, representing the fully completed questionnaire copies from 350 distributed, were selected using Cochran’s formula and a stratified multi-stage sampling technique to ensure proportional representation across the four communities. Data were collected using a structured questionnaire and analysed using appropriate statistical methods in SPSS version 27. Both descriptive and inferential statistics were employed, including frequencies, percentages, Chi-square tests, ANOVA, and logistic regression to explore associations, differences, and predictors among key variables. Findings revealed that fuel subsidy removal led to a substantial increase in household health expenditures, with 67% of respondents reporting higher medical costs. However, no statistically significant association was found between increased health expenditure and delay in seeking healthcare services (χ² = 1.67, p = 0.197). Income level showed only marginal influence on coping strategies, indicating that households across income categories adopted similar measures such as reducing non-essential spending, borrowing money, or switching to cheaper healthcare providers. The study concludes that while fuel subsidy removal has perceptible economic impacts on household budgets, its direct effect on healthcare-seeking behaviour remains limited. It recommends targeted health subsidies, expansion of community-based health insurance and strengthened primary healthcare systems to cushion vulnerable populations against the adverse effects of subsidy removal.