Title: Fuel Subsidy And Performance Of Smes In Awka South, Local Government Area Anambra State, Nigeria
Authors: Nwagbala, Stella Chinelo, Eruka Cosmas Ikechukwu, Francisca Nkiruka Ezeanokwasa, Obijiaku, Chimamkpa Promise
Volume: 9
Issue: 1
Pages: 17-29
Publication Date: 2025/01/28
Abstract:
The decision by the government to rightly remove the subsidy on fuel ignited a series of arguments and protests nationwide. This study examines the fuel subsidy removal and performance of SMEs in Awka South Local Government Area, Anambra State. The study adopted a survey research design and data was collected with the aid of a questionnaire, the population of the study consists of 357 respondents randomly selected from 5 Small and Medium Enterprises (SMEs) in the Awka south local Government Area. The hypotheses were tested using simple linear regression. The findings revealed that Fuel Subsidy significantly affects the cost of living in the Awka South Local Government Area, and fuel subsidies significantly affect the transport fare in Anambra State. It was concluded that fuel subsidy is a complex policy decision with potential implications for the performance of Small and Medium Enterprises (SMEs) in Anambra state Nigeria and recommended that it is crucial to implement well-designed social safety nets to cushion the impact of subsidies on vulnerable populations. This could include targeted cash transfers, subsidized healthcare, and educational programs to mitigate the immediate challenges faced by lower-income citizens. Government should also channel funds saved from subsidies into infrastructural development, like, creation of good roads, providing and maintaining of public transports and also invest in vehicles that do not depend on fuel. This can enhance overall productivity, attract foreign investments, and stimulate economic grow.