This study explores the psychological impact of fuel subsidy removal on library staff in public universities within Nigeria's South-South region. The study was guided by three objectives and research questions. A descriptive survey design was adopted with a population of 223 librarians from South-South Public Universities in South-South, Nigeria. Mean Sores were used to analyse the data collected. The findings amongst others revealed that majority of librarians experienced increased financial stress and mental health challenges such as anxiety and inability to perform maximally due to the removal of fuel subsidies. The study recommends the critical need for targeted mental health interventions, such as counseling and stress management programs, alongside economic policy adjustments to mitigate the adverse effects of subsidy removal.