FUEL SUBSIDY REMOVAL AND THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN CROSS RIVER STATE,NIGERIA​

ABSTRACT

Petroleum subsidy removal in Nigeria has led to serious contentions in the country due to its effects on the economy. This study examines the effect of petroleum subsidy removal on the performance of micro and small enterprises in Cross River State, Nigeria. The study adopted the Survey research design, the sample size for this study was 150 owners’ managers of micro and small scale enterprises in Calabar Municipality and Calabar South Local Government Areas of Cross River State while the Purposive sampling method was adopted as the sampling technique. The technique of data analysis was the Chi-square statistical technique, Findings from the Chi- square results revealed that the fuel subsidy removal has a significant effect on the profits of MSEs in Cross River State. Also, from the chi-square result, fuel subsidy removal has a significant effect on the sales of MSEs in Cross River State. Furthermore, from the chi-square result, fuel subsidy removal has a significant effect on the employment of people living with disabilities by micro and small enterprises in Cross River State. Finally, from the Chi-square result, the fuel subsidy removal has a significant effect on the market share of MSEs in Cross River State. Based on these research findings, it was recommended that the Cross River State government should intervene and provide means of transportation at a subsidized rates in the State so as to help reduce the high costs of transportation in the State and this will go a long way in boosting the performance of micro and small enterprises in Cross River State. Also, there should be a public – private partnership in the area of provision of transportation in the State so as to ease the movement of people as well as goods and services in the State. Furthermore, the prices of goods and services in Cross River State should be regulated to avoid incessant increases in prices and finally, good roads network should be constructed especially in the rural areas and existing ones maintained in the State so as to facilitate easy movement.