ECONOMIC CHALLENGES AND PSYCHOSOCIAL CONSEQUENCES OF ECONOMIC CRISIS ON VULNERABLE POPULATIONS IN ABEOKUTA, OGUN STATE, NIGERIA

The persistent economic instability in Nigeria, characterized by hyper-inflation, currency devaluation, and rising unemployment, has intensified the hardships faced by socially and economically disadvantaged groups. This study assesses the psychosocial impact of the economic crisis on vulnerable populations in Abeokuta, Ogun State, focusing on economic stressors, psychological outcomes, and the role of social work interventions. Adopting a descriptive survey research design, data were collected from 400 respondents—including unemployed youths, widows, elderly persons, and low-income earners—selected through multistage sampling. The findings revealed that the economic crisis has a statistically significant negative effect on psychosocial well-being, with over 70% of respondents reporting moderate to high levels of stress, anxiety, and hopelessness. Rising food prices (Mean=4.08) and the removal of fuel subsidies (Mean=4.11) were identified as primary stressors. While respondents primarily relied on informal coping mechanisms such as religious coping and family support, regression analysis showed that social work interventions significantly reduced psychosocial distress (β = −0.365, p < 0.001). The study concludes that while economic hardship severely undermines mental health, targeted social work strategies are vital for mitigating these effects and enhancing community resilience.