AN EXPLORATION OF CENTRAL BANK INTERVENTIONS AND SME PERFORMANCE IN South West Nigeria

Abstract

The Central Bank of Nigeria (CBN) implements foreign exchange (forex) intervention policies to promote the growth of small and medium enterprises (SMEs) in the South West region of Nigeria. This study explored the complex relationship between foreign exchange interventions by the CBN and the performance of SMEs in South West Nigeria. Thematic analysis was employed to analyse semi-structured interviews with SME owners and managers in Lagos, Osun, and Oyo State. The study identified five areas seeking to identify the factors underlying changes in government objectives towards forex interventions which include; volatile capital inflow, exposure to liquidity shocks, interconnected markets, forex hedging by exporters, and interest rate policy. The findings of this study assist SMEs and policymakers in prioritizing sustainable development indicators and making informed decisions to enhance their sustainability performance.