THE IMPACT OF FUEL PRICE INCREASE ON THE NIGERIAN ECONOMY

The study examine the impact of fuel price increase on the Nigeria economy whether negative or positive. The study adopted a survey research design approach to evaluate the level of effect the fuel price. increase has on the Nigeria economy the population of the study is made up of civil servant (CS), market men and women (MMW) and staff in the private sectors (SPS) concerned with petrol and gas affairs. Sample size of 150 persons was selected at random. It was distributed as follows civil servant (28) market men and women (65) and staff in the private sectors (57). A pretest was conducted and an outcome yield “r” = 0.92 indicating a high degree of consistency and reliability the instrument was 8-items survey questionnaire with a-5 Likert Scale response options of Very Relevant (VR), Relevant (R), No Effect (NE), Irrelevant (I) and Very Irrelevant (VI) and the Pearson product moment correlation coefficient was use to confirm formulated hypothesis. A structured questionnaire was used in this research work and was structured in line with the research objective questions and hypothesis of the study. The finding revealed that there is a significant relationship between the recent increases in fuel prices and economic growth in Nigeria. It was also discovered that the Nigeria economy is not developing because of the effect of fuel price hike on purchasing power and also discovered that Nigeria is not developing because of the fuel subsidy removal on the Nigeria balance of payment. Finally, the finding showed that there is significant relationship between increase in pump price of petroleum and food security