A Critical Psychological Investigation of the Mental Health Consequences of Structural Adjustment and Economic Austerity Policies in Nigeria Using Mixed Methods

Economic austerity policies including subsidy removal, currency devaluation, and public sector wage freezes have directly impacted millions of Nigerians, yet the population-level mental health consequences of these structural economic interventions have not been rigorously investigated from a psychological science perspective. This study conducts a critical psychological investigation of the mental health consequences of Nigeria's 2023 subsidy removal and economic austerity measures using a convergent mixed-methods design. Phase 1 applies a natural experiment quasi-experimental design, comparing GHQ-28 psychological distress scores in a panel of 800 adults surveyed before and six months after the June 2023 subsidy removal in Lagos and Kano. Difference-in-differences analysis in Stata estimates the causal mental health effect of the policy shock. Phase 2 conducts 60 in-depth interviews exploring the psychological experience of economic crisis across occupation and income strata. Phase 3 analyses secondary data from the National Bureau of Statistics household welfare surveys and national helpline call volumes as population mental health indicators. The Stress-Process Model by Pearlin, Critical Psychology Framework by Bulhan, and the Social Determinants of Mental Health Framework provide the theoretical scaffolding. The original contribution is the first quasi-experimental mental health causal analysis of an economic policy shock in Nigeria, advancing the intersection of critical psychology and macroeconomic policy. Findings will inform the Nigerian government on incorporating mental health impact assessments into economic policy design. Keywords: economic austerity, mental health consequences, critical psychology, Nigeria, subsidy removal.