The 2023 removal of Nigeria’s long-standing fuel subsidy triggered immediate and widespread socio-economic shocks. This paper examines the effects of this reform on Sokoto State’s informal transport sector, comprising motorcycles, tricycles, and minibuses that provide affordable transport and employment for low-income residents. Using documentary and secondary data from the National Bureau of Statistics (NBS), the International Monetary Fund (IMF), the World Bank, and national media sources, the paper explores how subsidy removal influenced operating costs, income, fare structures, and household welfare. Findings indicate that while subsidy removal aimed to promote fiscal sustainability, it has sharply increased operational costs for informal operators, leading to higher fares, reduced accessibility, and declining real incomes. Compounding these effects are weak and uneven palliative implementations. The study concludes that targeted palliatives, subnational microcredit schemes, and state-level transport support systems are essential to mitigate welfare losses while preserving reform objectives.
Keywords: Fuel Subsidy Removal, Informal Transport Sector, Sokoto State, Fiscal Reform, Public Policy, Nigeria.