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Impact of Naira Devaluation on Small & Medium Scale Enterprises (SMEs) in Nigeria: A Survey of South-South States, Nigeria

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  • Vincent EDEWHOR Ph.D

    (Department of Entrepreneurship, Delta State University of Science and Technology, Ozoro Delta State Nigeria)

Abstract

The study focuses on the impact of Naira devaluation on the SMEs, within the South-South geopolitical zone of Nigeria. Small and medium-scale enterprises., which are known to account for a large percentage of Nigeria’s gross domestic product and employment, are not left out from the effect of devaluation of the naira. The study covers the naira’s history, emphasizing on how it decreased in 2024 as a result of the President Bola Tinubu administration’s flexible exchange rate policy. In order to investigate the impact of currency devaluation, foreign exchange (forex) volatility, and price increases on operating expenditures, profitability, and sustainability, both quantitative and qualitative information were collected from 300 SMEs using questionnaires and interviews. The study revealed that many enterprises in the manufacturing category have been worse affected due to their inability to manage the fluctuating business environments. The study therefore highlights the imperative for policy actions, most especially to steady the naira, improve the supply of forex, and control inflation to aid SMEs

Suggested Citation

  • Vincent EDEWHOR Ph.D, 2025. "Impact of Naira Devaluation on Small & Medium Scale Enterprises (SMEs) in Nigeria: A Survey of South-South States, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 1152-1158, May.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-14:p:1152-1158
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