ENTREPRENEURIAL SURVIVAL IN POST-SUBSIDY NIGERIA: ANALYZING THE IMPACT OF PETROLEUM SUBSIDY REMOVAL IN NIGERIA ON MSME PRODUCTION AND GROWTH

Abstract

Entrepreneurial resilience is critical amid Nigeria’s recent macroeconomic shifts, particularly the 2023 subsidy removal and resulting price increases. This study examines the impact of petroleum subsidy removal in Nigeria on the production and growth of MSMEs across Nigeria. Using a quantitative approach, data were collected via structured questionnaires from 367 MSME operators in five geopolitical zones. Key variables included production costs, business performance, and adaptation strategies. Multiple regression models were applied, with MSME production and growth as dependent variables, and price-related factors-fuel, raw material inflation, and energy costs-as independent variables. Business size, sector, and location were controlled for in the analysis. Results indicate that rising fuel and energy costs significantly reduce MSME output and growth, with micro-enterprises in urban areas most affected. The study underscores the urgency of targeted policies to support MSMEs, recommending improved access to affordable energy and tailored relief measures based on business size and location. These findings contribute valuable insights for entrepreneurship development and economic policy in post-subsidy Nigeria.