Growth of Micro Small and Medium Enterprises (MSMEs) in Nigeria: Implication of Fuel Subsidy Removal

The study investigated the effect of subsidy removal on the growth trajectory of micro, small, and medium-scale enterprises (MSMEs) in Nigeria, with a specific focus on Bayelsa state. Utilizing a survey research design, the study aims to examine the effects of transportation and operational costs on both revenue generation and access to finance for MSMEs. The population of the study comprises 548,349 registered MSMEs in Bayelsa state, with a sample size of 400 MSMEs selected for data collection through questionnaire administration. The study relies solely on primary data sources. The findings of the study indicate a significant positive effect of transportation costs on revenue generation for MSMEs in Bayelsa state. Similarly, transportation costs demonstrate a moderate positive effect on access to finance for MSMEs. Furthermore, the study highlights a significant positive effect of operational costs on revenue generation, along with a modest but significant positive effect of operational costs on access to finance for MSMEs. Based on these findings, recommendations are proposed to improve transportation infrastructure, enhance operational efficiency, promote financial inclusion, and adopt a supportive policy framework tailored to the diverse needs of MSMEs in Bayelsa state