Chapter One — 1.1 Background to the Study

In recent years, Subsidy Removal has emerged as a critical factor shaping per capita income across organizations operating in and around Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how subsidy removal relates to per capita income has become an important area of both scholarly and practical concern.

Within the context of Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of subsidy removal on per capita income, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While subsidy removal is widely discussed in policy and industry circles, empirical evidence on its actual effect on per capita income within Nigeria 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 per capita income — a gap this study sets out to close.

1.3 Objectives of the Study

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

1.4 Research Questions

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

1.5 Significance of the Study

Beyond its academic contribution to the field of economics, this study has practical value for management teams within Nigeria seeking to understand how subsidy removal translates into measurable outcomes around per capita income. 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 per capita income within the context of Nigeria. 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.