Fuel Subsidy Removal and Logistics Cost Implications for Small-Scale Retailers in Makurdi, Benue State

This study investigates the logistics cost implications of Nigeria's fuel subsidy removal for small-scale retailers in Makurdi, Benue State, North Central Nigeria. The removal of the petroleum subsidy in 2023 triggered a sharp increase in fuel prices, with immediate ripple effects on transportation and logistics costs across all sectors of the economy. Small-scale retailers, who often depend on third-party transporters for goods sourcing, were among the most vulnerable. Using a descriptive survey design, structured questionnaires were administered to 160 small-scale retailers in the Wurukum and North Bank markets in Makurdi. The study measures pre- and post-removal logistics cost components including freight charges, delivery frequency, and sourcing radius. It also examines retailer coping strategies such as bulk purchasing, supplier switching, and price pass-through to consumers. Descriptive statistics and paired sample analysis are used to quantify the cost differential. The study is situated within the broader literature on fuel price volatility and supply chain cost management in oil-dependent developing economies. Findings are expected to show that retailers experienced average logistics cost increases of between 40 and 70 percent, with reduced sourcing frequency and higher average selling prices. Recommendations focus on government-supported logistics aggregation schemes, fuel-efficient vehicle subsidies for small logistics operators, and improved market infrastructure to reduce internal sourcing costs for retailers. Keywords: fuel subsidy removal, logistics cost, small-scale retailers, Makurdi, Benue State.