Chapter One — 1.1 Background to the Study

Subsidy Removal has increasingly attracted the attention of researchers, regulators, and practitioners concerned with household welfare. This growing interest reflects the recognition that subsidy removal does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Edo State.

Edo State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While subsidy removal is widely discussed in policy and industry circles, empirical evidence on its actual effect on household welfare within Edo State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to subsidy removal are helping or hindering household welfare — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Subsidy Removal on household welfare in Edo State.
2. To assess the extent to which subsidy removal influences household welfare within the study area.
3. To identify the challenges associated with subsidy removal in relation to household welfare.
4. To recommend strategies for optimizing subsidy removal in order to improve household welfare.

1.4 Research Questions

1. What is the effect of subsidy removal on household welfare in Edo State?
2. To what extent does subsidy removal influence household welfare within the study area?
3. What challenges are associated with subsidy removal in relation to household welfare?
4. What strategies can be adopted to optimize subsidy removal in order to improve household welfare?

1.5 Significance of the Study

Beyond its academic contribution to the field of economics, this study has practical value for management teams within Edo State seeking to understand how subsidy removal translates into measurable outcomes around household welfare. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Subsidy Removal and its relationship with household welfare within the context of Edo State. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.