The impact of SMEs financing on business growth in Nigeria using Keffi and Mararaba Metropolis as a case study was assessed in this work. Descriptive research designs as well t-test statistics for the test of hypotheses were utilized. Hypotheses applied for the study includes: banks credits to SMEs have no significant impact on growth of Nigeria economy as well as interest rates charged on credits has no effect on SMEs business expansion in Nigeria. Access to finance was found to be sine qua non for successful entrepreneurial development while in respect of interest rate charged on SMEs loans and advances; the entrepreneurs’ ability to borrow was not hindered. The study therefore recommends strong availability to finance for successful growth of SMEs through different channels like microfinance banks and institutions in addition to formal and informal financial institutions. In addition, the scheme could be further expanded vide various tax palliatives. It is also recommended that t...

The study employed Co-integration and Error Correction Modelling (ECM) techniques to investigate empirically the impact of commercial bank credit on Nigeria's Small and Medium Scale enterprises (SMEs) between 1986 and 2012.The results revealed that SMEs and selected macroeconomic variables included in the model have a long run relationship with SMEs output. The study also reveals that savings time deposit and exchange rate has a significant impact on SMEs output in Nigeria. Furthermore, commercial bank credit to SMEs, total government expenditure and bank density has direct but insignificant impact on the country SMEs output this may be connected with stringent policy in accessing credit facility and the crowd out effect of government expenditure in the economy. The study also shows that interest rate has adverse effect on SMEs output. The study recommended among others that interest rate on credit facility granted to SMEs should be drastically reduced, commercial banks should grant soft loan to this important sector of the economy and also reduced stringent policy in supply of credit to SMEs and monetary authority should encourage commercial bank to set up more branches in the rural areas in order to encourage rural occupant to save and have assesses to credit facility.

This study examines the impact of financing small scale enterprises on economic growth in Nigeria, using a quarterly time series data from 1992 to 2009. The study combined several econometric estimation techniques. The findings shows that loan to small scale entrepreneurs have a positive impact on the economic performance while interest rate has a negative impact on economic growth. The study thereby concludes that the greatest or worst problem confronting SMEs in Nigeria is managerial capacity. Access to capital or finance is necessary but not a sufficient condition for successful entrepreneurial development.

Abstract: This study examined the impact of banking system credit to small and medium scale enterprises (SMEs) and economic growth in Nigeria using annual data covering 1981 to 2013 periods. The study employed ordinary least square (OLS) and co-integration econometric method with the use of sequential modified LR test statistic as lag length selection criteria to conduct its tests and analysis. The results revealed that the banking system credit to SMEs though gradually increased yearly as a result of increase in population and hence economic activities, the credit to SMEs as a percentage of total credit to the private sector declined yearly. Banking system credit to SMEs was not significant and thus did not contribute meaningfully to economic growth in Nigeria. Total credit to the private sector was statistically significant and positive at 5% level of significance. While lending rate has negative and significant impact on economic growth in Nigeria. The need for the government to intervene in a more meaningful way through articulated policies and programmes that will promote funding of SMEs and reduce the level of lending interest rate have been recommended. This will stimulate and rejuvenate SMEs development and sustainability in Nigeria. Keywords: Banking System, Credit, SMEs, Economic Growth, Lending Rate, Collateral Security, Indigenous Technology. JE : Classification: G01, G21, G28, F43.

SMEs has become a popular subject of discuss for developing economy globally, and the present study examined the influence of SMEs bank finance on economic growth of Nigeria. The specific objectives examined in this study were to; (i) to examine the effect of loan and advances to agriculture, forestry and fishing industry on economic growth; (ii) to identify comparison between loan and advances to general commerce industry with that of agricultural related industry. The study analyzed data collected from eleven indigenous deposit money banks in Nigeria from 2010 to 2019. Secondary sources of data were explored to achieve the stated objectives of the study. Fixed and random Effect regression analysis method were adopted for the analysis. The study found that loans and advances to SMEs in agricultural sector have significant positive effect on economic growth with (p-value 0.016, P < 0.05). The study also found positive insignificant impact of loan and advances to general commerce sector on GDP. The findings also revealed that inflation rate has significant negative relationship with economic growth. Therefore, we recommend that all stakeholders in Nigeria should ensure that affordable loans are made available to agricultural sector, and the rate of inflation need aggressive measure to reduce it to the barest minimum.

This study examines the impact of banking sector credit on the growth of small and medium enterprises in Nigeria. The main objective of the study is to investigate whether banking sector credit has significant impact on the growth of small and medium enterprises in Nigeria. As part of the methodology, annual data between 1985 and 2010 was collected and used in the study while descriptive statistics, correlation matrix and error correction model was used to test the formulated hypotheses which reveals that banking sector credit has significant impact on the growth of small and medium enterprises in Nigeria as it has positive impact on some major macro-economic variables of growth such as inflation, exchange rate, trade debts etc. The study however, recommends that financial lending institutions (Monetary Authorities) should relax the stringent conditions associated with credit facility in the funding of SMEs in the country so as to encourage easy accessibility of loans which will hel...

The objective of this study is to examine the impact of Small and Medium scale Enterprises (SMEs) on economic growth in Nigeria. We employed secondary data of credit to SMEs and gross domestic product for the period 1997-2007 and used Ordinary Least Square regression as method of data analysis. We found that increased credit to SMEs has a positive impact on economic growth if the credit is adequately utilized and recommends that the CBN should establish National Credit Guarantee Scheme for SMEs that will guarantee atleast 80% of credit to SMEs in Nigeria.