THE EFFECT OF GOVERNMENT POLICIES ON THE PERFORMANCE OF SMES IN NIGERIA (A CASE STUDY OF SOME SELECTED SMES IN DAMATURU)

This study examines the effect of government policies on the performance of Small and Medium Enterprises (SMEs) in Nigeria, with a specific focus on some selected SMEs in Damaturu as a case study. Over the years, SMEs in Nigeria have operated under various regulatory, fiscal, and institutional frameworks that significantly influence their productivity, growth, and survival. The study investigates how government policies such as taxation, regulatory procedures, access to finance initiatives, and infrastructural support affect the operational efficiency and overall performance of Some Selected SMES In Damaturu as an SME operating within Yobe State. Primary data were collected through structured questionnaires administered to management and staff of some selected SMES in Damaturu, while secondary information was sourced from government policy documents, SME reports, and related empirical literature. Descriptive statistics were used to summarize the responses, and inferential analysis was applied to determine the extent to which government policies impact the organization. Findings of the study reveal that government policies have a substantial influence on the performance of some selected SMES in Damaturu. Specifically, tax-related policies and regulatory compliance requirements were found to increase operational costs and administrative burdens on the organization. Conversely, supportive policies such as government grants, training programmes, and public-sector financing schemes positively contribute to improving some selected SMES in Damaturu production capacity and sustainability. The study concludes that while some government policies create enabling environments for SMEs, others pose constraints that hinder growth. It recommends that government should simplify regulatory processes, review tax burdens, and strengthen SME support programmes to enhance the performance of some selected SMES in Damaturu and similar enterprises in Nigeria.