IMPACT OF FUEL SUBSIDY REMOVAL ON SMALL SCALE BUSINESS AND FINANCING IN DAMATURU METROPOLIST

Abstract

ABSTRACT

The study examined the impact of fuel subsidy removal on small-scale businesses' financing in Damaturu. The study contributed to existing knowledge by focusing on the relationship between fuel subsidy removal and its impact on small-scale industries. The study was based on crowding theory and supply and demand theories. The population of the study is 327 registered small scale businesses in the small and medium enterprise industries in Damaturu, Yobe state. Purposive probability sampling was used to select the targeted respondents. Data collected was analyzed using a chi-square analysis of 45 questionnaires filled out and returned. The result showed that there is a significant relationship between subsidy removal and small-scale businesses' financing. The researcher recommended that the government should improve and expand financing programs for small-scale businesses. This includes increasing accessibility to loans and providing more substantial financial support to foster business growth and sustainability.