FUEL SUBSIDY REMOVAL AND SMALL AND MEDIUM ENTERPRISES (SMES) PERFROMANCE IN ONDO STATE

This research aimed to examine the fuels subsidy removal and small medium enterprises (SMEs) performance in Ondo State, with reference to selected enterprises in Owo LGA. This research was survey descriptive methods where the data for the study will be collected data form the selected SMEs members in Owo metropolis. The objective for the include to examine the effect of fuel subsidy removal on inflation rate and SMEs performance in Owo LGA, Ondo State, also analyse high rate of unemployment among SMEs innovators performance in the selected LGA, Assess the increase in the operational cost incurred by SMEs productivities in the study area of Ondo State and the high rate of crimes caused by the removal of fuel subsidy on SMEs performance in Owo Local Government area of Ondo State. The sample size employed for the study was one one hundred and fifty two (152) copies of questionnaire were originally administered among the respondents while one hundred and fifty (150) were returned filled. Thus the response rate stood at 98.68%. From the finding from the hypothesis, the decision Rule determine that since X2 Cal, (-18.37) is greater than X2 Tab. (8.49) at 5% confidence level and 5% degree of freedom. The null hypothesis (H0), which states that Fuel subsidy removal, has no positive influence of inflation rate on SMEs performance in Owo LGA, Ondo State. It therefore, recommended that Federal Government assistance, SMEs should investigate energy-efficient options, such as energy management techniques or renewable energy sources, to lessen the effect of rising power prices; the government should also propose policies that would alleviate the negative implications of eliminating subsidies and it is imperative that the government take action to allay these worries and lessen any potential negative consequences from rising fuel costs