Effects of Fuel Subsidy Removal on Small-Scale Industries in Nigeria

Abstract

This research explores the effects of fuel subsidy removal on small-scale businesses in Nigeria, a critical sector in the nation’s economic landscape. The study contributes to existing knowledge by focusing on the relationship between subsidy removal and its impact on small-scale industries. A comprehensive literature review considers climate change impacts, socio-economic and environmental externalities, and the historical context of fuel subsidies. While previous studies have investigated macro and micro consequences, this research examines the repercussions on small-scale businesses. Utilising a descriptive research design and a Likert-structured questionnaire, the study investigates the ramifications of recent fuel subsidy removal in a typical community in the country. Key factors, including changes in sales, operational costs, and profit margins, are analysed using descriptive statistical methods and the Chi-square test. The findings highlight the interconnectedness between government policies and the health of small-scale businesses, emphasising the need for evidence-based decision-making to support resilience in adapting to policy changes.