Investigating the Effects of Minimum Wage and Fuel Subsidy Removal on Teachers’ Welfare and Productivity in Osun State, Nigeria: The Moderating Influence of Principals' Situational Leadership Style

Menyelidiki Pengaruh Upah Minimum dan Penghapusan Subsidi Bahan Bakar terhadap Kesejahteraan dan Produktivitas Guru di Negara Bagian Osun, Nigeria: Peran Moderasi Gaya Kepemimpinan Situasional Kepala Sekolah

Abstract

Economic policy changes, such as minimum wage adjustment and subsidy removal, can compromise employee, especially teachers’ welfare and productivity, yet the role of principals' situational leadership in mitigating these impacts remains unclear. This study, therefore, explored the perceived moderating role of principals' situational leadership style on the impact of minimum wage implementation and fuel subsidy removal on teachers' welfare and productivity in Osun State, Nigeria. The study employed concurrent mixed-method, while two-hundred and ten participants were purposively sampled among serving public secondary school teachers in Irewole, Isokan and Ayedaade federal constituency, Osun State, Nigeria. A validated self-designed instrument was used and the data obtained were analysed with the aid of both descriptive and inferential statistical tools. The findings indicated that the teaching workforce in Osun State, Nigeria, is predominantly middle-aged (46%), female (65%), and relatively well-qualified (63% with First Degree/HND), with limited postgraduate representation (9% with Master's). Minimum wage implementation (β = 0.070, p > 0.05) had a non-significant positive impact, while fuel subsidy removal (β = -0.012, p > 0.05) had a non-significant negative impact on teachers' welfare and productivity. Together, they accounted for 10.1% variation. Low leadership exacerbates fuel subsidy removal's negative impact (β = -0.25, p = 0.012), while effective leadership improves outcomes (β = 0.32, p = 0.003). Leadership style moderates this impact (β = 0.18, p = 0.010). The study concluded that minimum wage and fuel subsidy removal have non-significant effects on teachers' welfare/productivity, but situational leadership moderates fuel subsidy removal's impact, with effective leadership improving outcomes. There is need to implement transportation allowances for teachers and prioritise leadership development training for principals to boost school resilience.