Effect Of The Naira Devaluation On Small And Medium Scale Enterprises In Nigeria (A Case Study Of Selected Mini Importers In Lagos)

Abstract

This study examines the effect of devaluation in Nigeria by means of selected mini-importers in Lagos Nigeria to small and medium-sized enterprises. The aim of this study is, evaluate the extent to which SMEs depend on foreign goods and services, determine the impact of the naira devaluation on Nigerian SMEs' financial performance, assess the impact on import volume of SMEs in Nigeria of the naira depreciation, Examining Naira's effectiveness in encouraging the development of indigenous small and medium-sized enterprises in Nigeria, with respect to methodology. This study focused on the effect of the naira devaluation on the output of small and medium-sized 34 companies in Lagos state. The respondents were mainly importers of businessmen and women in Lagos. And they were drawn from business men and women mostly importers in Lagos. A total sample size of two hundred (200) respondents selected from the research population using the convenient sampling method, The findings show that the naira depreciation has both negative and positive effect on the businesses and Nigeria as a whole. Gathered through the use of primary data (questionnaire). The study recommended to the government and the general public that, Value Creation should be the trademark of Small and Medium Scale enterprises in Nigeria. Goods and services that can attract foreigners should be produced to reduce the effect of the naira devaluation. Therefore, Policies should be designed and implemented to fast track the diversification of the Nigerian economy. Other areas such as agriculture, tourism, education should be explored to attract more foreign exchanges and revenue and Enabling environment for business to strive should be created.