ANALYZING THE IMPACT OF FIRM SIZE ON REAL SECTOR PERFORMANCE IN NIGERIA: INSIGHTS FROM QUOTED FIRMS
This study takes a closer look at how firm size affects the performance of Nigeria’s real sector, focusing on eight publicly listed firms on the Nigerian Stock Exchange (NSE) from 2013 to 2022. Using the panel autoregressive distributed lag (ARDL) model as the main approach and confirming results with the fully modified ordinary least squares (FMOLS) method, we found some interesting insights. The ARDL results show that sampled firms tend to perform better across agriculture, manufacturing, and services. However, the FMOLS analysis reveals a surprising twist, indicating that these firms might actually hurt overall sector performance. These findings highlight the need for better financial support, especially for small businesses. The government and financial institutions should work together to offer affordable financing options, like lower interest rates and credit guarantee schemes, to ease lending risks. Supporting SMEs through venture capital, grants, and other investment tools can also drive growth. Beyond finance, infrastructure is key. Stable electricity would cut down production costs, particularly in manufacturing, while better roads, ports, and rail networks could improve trade and logistics. Investing in digital infrastructure is equally important, helping firms leverage modern technology to boost productivity. By tackling these challenges, Nigeria can create a stronger, more competitive real sector that benefits businesses of all sizes.
Firm Size, Real Sector, Firm Performance, Quoted Firms.