Assessment of Business Performance in Pre and Post Era Subsidy Removal among Bakeries in South-East Nigeria: A Comparative Analysis

This study assesses the business performance of bakeries in Southeast Nigeria before and after the recent removal of government fuel subsidies, grounded in Barney’s (1991) Resource-Based View (RBV) Theory. Using a comparative analysis across Abia, Anambra, Ebonyi, Enugu, and Imo states, the research evaluates six performance indicators: financial performance, operational efficiency, market share, employment, sustainability, and external environmental factors. Descriptive statistics reveal significant improvements post-subsidy removal, with mean scores indicating enhanced business resilience and growth. Independent t-tests show statistically significant differences in all performance metrics across the states, with the most notable improvements observed in Abia, Enugu, and Anambra (p < 0.01). For instance, Abia exhibited significant gains in profitability, operational efficiency, market share, employment, and sustainability, suggesting that infrastructural support like constant electricity and policy environment positively influence business resilience. Conversely, Ebonyi displayed weaker effects, with some indicators approaching the significance threshold (p > 0.05), indicating lingering external and infrastructural challenges. The findings highlight that while subsidy removal has posed some challenge it has generally improved bakery performance, the magnitude varies across states, emphasizing the need for targeted infrastructural and external environment enhancements. The study recommends policymakers focus on strengthening infrastructural support and external factors, particularly in lagging states like Ebonyi, to sustain and amplify positive outcomes. The results suggest that strategic resource allocation and supportive policies are crucial for optimizing bakery business performance amidst economic reforms.