Abstract

This study investigates the perception of small and medium-sized enterprise (SME) owners regarding the accessibility of loan facilities following the removal of the fuel subsidy in Nigeria. With SMEs facing increased operational costs, their need for external funding has become more critical. The study sampled 27 SME owners from a population of 45, using questionnaires for data collection. The data were analyzed through tables and percentages to explore how SME owners perceive the availability and ease of accessing loans under the current economic climate. The findings reveal that despite the heightened need for financial support, SME owners face significant challenges in accessing loan facilities. Key barriers include high interest rates, complex loan application processes, and stringent lending conditions imposed by financial institutions. While loans are deemed essential for business survival and growth, many SMEs are unable to meet the requirements to secure financing. This situation is exacerbated by the economic pressures following the removal of the fuel subsidy. The study concludes that to improve SME access to loan facilities, financial institutions should simplify loan procedures, reduce interest rates, and create specialized loan schemes. Additionally, the government should play a more active role in offering loan guarantees and implementing policies that foster SME growth. These measures will help mitigate the adverse effects of subsidy removal on SME operations and enhance their contribution to the economy. Perception of Small and Medium Enterprises (SMEs) Owners on Loan Facility Accessibility after fuel subsidy removal.

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