CENTRAL BANK OF NIGERIA COVID-19 STIMULUS PACKAGES A SLIPPERY SLOPE FOR MSMES PERFORMANCE FOR SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a major role in the economic development of countries globally. However, the recent pandemic called COVID-19 has brought devastating effects on this sub-sector resulting in the collapse of many businesses and others in poor conditions in Nigeria. This has called the attention of the Central Bank of Nigeria (CBN) to provide stimulus packages to support the sub-sector in their quest to boost the economic development of the country. Therefore, the study aims to assess the impact of CBN stimulus packages on MSMEs for sustainable economic development in Yobe State, Nigeria. Survey research was used. The population of the study was 600 beneficiaries of CBN COVID-19 stimulus packages in Yobe State from which 234 were sampled through a convenient sampling technique. Pearson correlation and multiple linear regression used in analysing the data collected. The findings of the study revealed a significant effect of stimulus packages on the all four dimensions of MSMEs' performance (profitability, stock/output level, product/service quality, and employee turnover/retention). The study recommends that proactive plans should always be put in place ahead of events like COVID-19 that will probably affect business organizations, also financial institutions such as banks should kick start such action to help sustain economic viability. Future researchers should consider investigating the effect of other government support on MSMEs during COVID-19.