Impact of Fuel Subsidy Removal on the Performance of Nano, Small and Medium Scale Enterprises in Balogun Market, Lagos Island, Lagos State

Nano, Small and Medium size Enterprises in Nigeria are experiencing great challenges occasioned by fuel subsidy removal policy of Federal Government. The objective of this study is to examine the Impact of Fuel Subsidy Removal on the Performance of Nano, Small and Medium Scale Enterprises in Balogun Market, Lagos Island, Lagos State, Nigeria. Survey research design was used. Population consists of 11,643 registered Small and Medium Scale Enterprises (SMEs) in Lagos state. Sample size of 387 Nano Small and Medium Scale Enterprises (NSMEs) was arrived with the use of Taro Yamani formular (1967). While the respondents were selected with use of simple random sampling technique. Questionnaire was used to collect data from respondents. Results of the findings revealed that Fuel Subsidy Removal affect both Logistics and overhead costs performance of Nano, Small and Medium Scale Enterprises in Balogun Market, Lagos Island, Lagos State Nigeria. It was recommended that government should provide public transport at a reduced cost to Nano Small and Medium Scale Enterprises (NSMEs) in order to curb the effect of high logistics costs. Also, that government should implement good monetary policies that will reduce the high foreign exchange rates in order to reduce the overhead costs of Nano Small and Medium Scale Enterprises (NSMEs) in Nigeria.