In this article, the impact of fuel subsidy removal on transportation costs among staff and students of federal University Lafia (Fulafia) was studied for national development in Nigeria. The data used for this study was primary data obtained through google form with the aid of artificial intelligent (AI) sent tomembers of staff and students of Federal University Lafia (Fulafia) using various WhatsApp groups in the Institution. The transportation costs, distance of kilometers cover, transportation means used to their respective accommodation from school were captured in the questionnaires. The dataanalysis used were frequencies, simple percentages and descriptive statistics such as mean, standard deviation and variance. Results showed that the costs of transportation fare has an increased unbearably due to fuel subsidy removal and that impacted negatively on some staff and students of the University with transport cost of ₦2000 per day for kilometer between 2-4km distance and of ₦5000 per day for kilometer between 8-10km distance from their houses to the institution. This resulted several consequences on students’ Academic pursuit and staff service delivery. The study recommends that Management of federal university, Lafiaand their Union should provide loan to staff/students to purchase bicycles, motor cycles and cars to ease transportation fare to school and also the Nasarawa state government should provide support to minimizethe effect of subsidy removal on cost of transportation costs to reduce hardship on staff and student in the institution.

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