Effect of firm performance and fuel subsidy removal on consumer goods firms listed in the Nigerian Exchange Group (NGX)

Abstract

Fuel subsidy policy in Nigeria has been one of the major pillars of the economic management of the country over the decades, and it has significantly influenced the production and cost dynamics of the energy sector, state spending, and the cost regulation of the private industry. The research design applied in the study was quantitative research design guided by panel data analysis to investigate the impact of the removal of fuel subsidy on the performance of consumer goods firms listed in the Nigerian Exchange Group (NGX). The study population comprised all consumer goods companies listed on the NGX, of which 17 firms were sampled based on data availability. The result revealed that the removal of fuel subsidy (FSR) has a negative impact on all performance indicators (ROA, ROE, NPM, and MTB), which is statistically significant, indicating that the subsidy removal policy has had a negative impact on the profitability of firms and their market value.

Keywords

How to Cite

Edheku Ochuko Joy., Egware Nelson Oke., Uwhejevwe-Togbolo Samuel Ejiro. (2025). Effect of firm performance and fuel subsidy removal on consumer goods firms listed in the Nigerian Exchange Group (NGX). DOU Journal of Management Sciences, 1(1), 83–99.