Smuggling has become a huge global menace which has continued to impact on the activity of locally manufactured good. The study examined the effect of smuggling on performance of small and medium scale enterprises in Ekiti state. The study adopted survey approach in which questionnaire was the research instrument. The study population consists of 395 small scale business owners in Ekiti state. Multi-stage sampling was used to select 350 SMEs owners who participated in the study. Data analysis was done using simple linear regression. The regression test results showed that smuggling activities significantly affect the performance SMEs in Nigeria. It was recommended among others that Government of Nigeria should consider having a clear smuggling policy which should vehemently stand tall against any act of smuggling while offenders should be heavily punished.
Keywords: Economic Performance, Economy, SMEs, Smuggling
