ABSTRACT
This study was carried out to examine the relationship that supposedly exist between Naira devaluation and the performance of Small and Medium Enterprises. The focus of the SME group was the exporters. The study specifically sought to investigate the effect of Naira devaluation of the frequency of imports and the impact of Naira devaluation on the operations of small and medium enterprises. The study adopted the survey research design. Employing the judgemental sampling, a total of 100 entrepreneurs in Lekki area of Lagos state was consulted and their consent was obtained to be part of this study. Using the chi-square statistical tool, the findings of this study revealed that there is a negative effect of Naira devaluation on the performance of small and medium enterprises. Specifically, SMEs in Nigeria are affected with the high cost of items are imports discouraged led to scarcity of items. Further, specific findings revealed that patronage dropped for some SMEs and this situation led to high cost of operation. The study suggests that government should first encourage through practical means, self-sufficiency before undertaking currency devaluation. This is because a country that cannot produce its own food will surely have to depend on other economies for sustenance.
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