Post-Subsidy and Energy Price Shocks: A Comparative Analysis of SME Adaptation in Ghana and Nigeria

The removal of fuel subsidies in Nigeria in May 2023 triggered widespread economic disruption, with particularly severe consequences for small and medium enterprises (SMEs) that depend heavily on affordable energy and transportation. In contrast, Ghana has operated a deregulated petroleum pricing system since 2015 under the supervision of the National Petroleum Authority, resulting in a market-based fuel pricing regime without direct consumer subsidies. This study provides a comparative analysis of SME adaptation to post-subsidy and energy price shocks in both countries, examining how differences in policy timing and institutional structures shape enterprise resilience. Using a comparative, convergent mixed-methods design based on secondary data, the study integrates macroeconomic indicators from national and international institutions with qualitative evidence from SME surveys, policy reports, and peer-reviewed literature. Data sources were selected using a purposive document strategy that emphasized relevance, credibility, and direct linkage to SME performance under energy price changes. Findings reveal that Nigerian SMEs experienced acute cost shocks following the removal of subsidies, while Ghanaian SMEs have faced more gradual but persistent cost pressures. Across both contexts, SMEs demonstrate adaptive strategies such as digital transformation, energy substitution, and supply chain localization, although adaptive capacity remains uneven and shaped by access to finance, infrastructure, and institutional support. The study highlights that energy price reform affects SMEs differently depending on policy design and structural conditions, offering insights for managing enterprise resilience in energy-constrained environments.