IMPACT OF FUEL SUBSIDY REMOVAL ON VEHICULAR ASSET DEPRECIATION IN MINNA METROPOLIS, NIGER STATE, NIGERIA

Abstract

This study investigates the significant impact of fuel subsidy removal on the depreciation of vehicular assets in
Minna Metropolis, Niger State, Nigeria. The research aims to understand the economic implications of this
policy change on vehicle owners and the transportation sector. Both primary and secondary data sources were
utilized for data collection. A total of 101 questionnaires were administered to randomly selected respondents
from eleven wards in Minna Metropolis. A 93% response rate was achieved, with 96 completed questionnaires
returned. The reliability of the questionnaire was ensured through the use of the Yamane and Taro sampling
method. Key findings reveal that: Vehicle ownership is most prevalent among individuals aged 26-35.
Employment status is a significant factor influencing vehicle ownership, with public sector employees being the
most likely owners, followed by private sector employees and self-employed individuals. Students exhibit the
lowest rate of vehicle ownership; vehicles aged 3-4 years are the most popular among respondents, suggesting
a preference for newer vehicles or a specific price point associated with this age range, vehicles are
predominantly used for personal purposes, followed by commercial use. This indicates that personal
transportation needs are the primary driver of vehicle ownership in the surveyed population. Most vehicle
owners drive less than 1000 kilometres per month, suggesting a prevalence of short-distance travel. Based on
these findings, the study recommends Government financial assistance to vehicle owners, investment in public
transportation infrastructure. Also, government should promotion of alternative fuels and regular policy
evaluation to mitigate the negative impact of fuel subsidy removal on vehicular asset depreciation.