RISING PRICES AND INFLATION ON SMALL BUSINESSES IN NIGERIA: AN ECONOMIC ANALYSIS AND RECOMMENDATIONS FOR FEDERAL AND STATE GOVERNMENTS

Abstract

This study examines the impact of rising prices and inflation on small businesses in Nigeria and provides recommendations to the Federal and State Governments of Nigeria to address this issue. The study employs a mixed-methods research design, combining quantitative and qualitative data collection and analysis methods. The quantitative data is collected through a survey of small businesses in Nigeria, while the qualitative data is collected through in-depth interviews with small business owners and key stakeholders. The study finds that inflation has had a significant negative impact on the sales, profits, and operations of small businesses in Nigeria. The key economic factors contributing to inflation in Nigeria are rising costs of production, increased demand, changes in government policy, and exchange rate fluctuations. Small businesses in Nigeria face a number of challenges in coping with rising prices and inflation, including reduced profit margins, difficulty accessing financing, increased competition, difficulty planning for the future, and reduced consumer demand. The study recommends that the government take steps to address the key economic factors that are contributing to inflation in Nigeria. The government should also implement policies and interventions to help small businesses cope with the impact of inflation. This could include providing financial assistance, promoting access to financing, and providing training and technical assistance.