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Vol. 1 No. 4 (2026): August
Subsidy Removal and Bakeries Business Performance in South-East Nigeria: A Comparative Assessment of Pre and Post Periods
Abstract
Purpose: This study analyzes the effects of subsidy removal on bakery business performance in Southeast Nigeria, focusing on operational outcomes before and after subsidy removal. It specifically examines how increases in fuel prices, raw material costs, and energy and operational expenses influence the operational efficiency of bakeries.
Research Methodology: A descriptive cross-sectional survey design with a retrospective comparison of pre- and post-subsidy conditions was employed. Data were collected from 245 bakery managers across five Southeast states in Nigeria using a structured questionnaire. Descriptive statistics, paired-sample t-tests, and multiple regression analysis were applied at a 5% significance level.
Results: The findings reveal a significant decline in cost stability and operational efficiency following subsidy removal. Among the variables, changes in raw material costs were the strongest predictor of efficiency decline, followed by fuel price increases and rising energy and operational costs. The regression model demonstrated strong explanatory power.
Conclusions: The removal of fuel subsidies significantly disrupted the cost structure of bakeries, leading to reduced operational efficiency. This highlights the importance of effective cost management and adaptive strategies for business survival.
Limitations: The study is limited by self-reported data and its focus on registered bakeries in Southeast Nigeria, which may limit generalizability, but it provides evidence on the impact of energy policy reforms on SME performance and operational resilience.
Contributions: Explain This study provides empirical evidence on how energy policy reforms affect SME performance and offers practical insights into improving operational resilience in a volatile economic environment.
Keywords
Bakery Businesses
Energy Costs
Fuel Subsidy Removal
Operational Efficiency
Raw Material Costs
How to Cite
Anthony Uchenna , O. ., Mary Ezinne, . K. ., Mary Obianuju, C. . . ., & Nnabuife, E. K. . (2026). Subsidy Removal and Bakeries Business Performance in South-East Nigeria: A Comparative Assessment of Pre and Post Periods. Advances in Management and Business Studies, 1(4), 245–260. https://doi.org/10.35912/ambus.v1.n4.p245-260.2026
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