Impact of Small and Medium-Scale Enterprises Financing on Standard of Living in Nigeria
Abstract
This study seeks to examine the relationship between SMEs financing and per capita income in Nigeria. The study adopted the ex-post facto research design hence data were collected from secondary sources. Data for the study were obtained from the Statistical Bulletin of Central Bank of Nigeria for the period of 2000-2024. The OLS was used to run the regression analysis after carrying out several diagnostic checks. Findings of the research show that loan disbursement to SMEs and loan repayment period have a positive effect on per capita income in Nigeria. The study also establishes a negative effect of lending rate on per capita income in Nigeria. The study, therefore, concludes that SMEs financing positively contributes to the level of per capita income in Nigeria, and recommends amongst that the lending rates to SMEs be reduced to encourage further borrowing and improve per capita income.
Keywords
Small and Medium-Scale EnterprisesLoan DisbursementLending Rate
References
Adesina, K., & Obikoya, J. (2024). Loan disbursement and SME income in Nigeria: national survey. Journal of Entrepreneurship and Development, 9(2), 66–88. Adebayo, R., & Yusuf, T. (2019). Access to finance and SME performance in Nigeria. Journal of African Economic Studies, 11(3), 122–138. Abdullahi, S., & Mohammed, U. (2025). Institutional frameworks and SME credit accessibility in Nigeria. Nigerian Journal of Development Finance, 12(1), 44 59. Adebayo, R., & Yusuf, T. (2019). Access to finance and SME performance in Nigeria. Journal of African Economic Studies, 11(3), 122–138. Adebayo, R., & Yusuf, T. (2024). Central Bank interventions and SME profitability in Nigeria. International Journal of Finance and Policy Analysis, 15(2), 89–105. Adebisi, O., & Ajayi, M. (2023). Loan tenure and SME survival: Evidence from Nigeria. Journal of Business Sustainability, 8(4), 35–52. Adebisi, T., & Olayemi, K. (2019). SME financing challenges in Nigeria. Nigerian Financial Review, 14(2), 91–108. Adeoye, A., & Adesola, B. (2022). Repayment structures and investment productivity among Nigerian SMEs. African Business Research Journal, 10(1), 27–40. Adeoye, B., & Yusuf, T. (2024). Fintech and agency risk mitigation in SME lending. Journal of Financial Innovation in Africa, 5(1), 51–69. Adeniran, A., Osho, R., & Ibrahim, A. (2023). Regional inequality in SME lending: A Nigerian perspective. Development Studies Quarterly, 14(3), 77–94. Adesina, K., & Obikoya, J. (2024). Loan disbursement and SME income in Nigeria: A national survey. Journal of Entrepreneurship and Development, 9(2), 66–88. Afolabi, M. (2023. Interest rates and the SME credit gap in Nigeria. Nigerian Journal of Financial Studies, 6(2), 25–42. Ajibola, Y. K., & Abdulwaheed, M. (2024). Development bank credit and SME performance in Nigeria. Journal of Public Finance & Development Policy, 18(1), 99–118. Awuzie, E. (2023). Financial deepening and SME growth in Makurdi, Nigeria. Benue Economic Review, 7(1), 17–34. Emeka, L., & Chukwu, M. (2021). Microloans and women’s welfare in Nigeria. Journal of Gender and Development Finance, 4(2), 18–34. Eze, B. (2022). Credit access and enterprise development in Nigeria. Economic and Policy Journal, 10(4), 81–97. Ezeani, E., & Okeke, P. (2018). Impact of SMEs on community livelihoods in Nigeria. Journal of Local Economic Development, 6(3), 51–64. Federal Ministry of Finance, Budget and National Planning. (2022). National Development Plan (2021–2025). Gbandi, E. C., & Amissah, G. (2014). Financing options for small and medium enterprises (SMEs) in Nigeria. European Scientific Journal, 10(1), 327–340. Ibeh, K., Nwakoby, C., & Okonkwo, J. (2023). Commercial bank credit and Nigeria’s GDP per capita. Journal of African Macroeconomic Research, 12(3), 55–78. Malam, A., Hassan, B., & Marafa, S. (2024). Credit access among non-agricultural SMEs in Sokoto. Journal of Household Economics, 9(1), 71–89. National Bureau of Statistics. (2024). Labour force statistics: Unemployment and underemployment report. Abuja, Nigeria: NBS. Nwankwo, O., & Okoye, J. (2020). Formal vs. informal lending practices in Nigerian SMEs. Nigerian Journal of Credit Studies, 3(2), 28–47. Nwankwo, O., Ibrahim, M., & Salihu, D. (2023). Improving repayment behavior through relationship lending. Journal of Applied Finance & Banking, 13(1), 45–61. OECD. (2023). SME and Entrepreneurship Outlook 2023 Ogbu, A., & Onwumere, J. (2016). Loan tenure and SME sustainability in Nigeria. Journal of African Financial Management, 8(2), 55–72. Okafor, I., & Ibe, A. (2024). Integrated loan packages and SME income in Nigeria. Journal of Economic Inclusion, 11(4), 33–56. Okeke, L., & Bello, S. (2023). Access to credit in Northern Nigeria. Journal of Development Economics and Policy, 7(2), 67–84. Okeke, T. (2025). Microfinance and the Human Development Index in Nigeria. Journal of Social and Economic Studies, 15(1), 101–118. Okonkwo, I., & Eze, B. (2024). Evaluating government SME credit programs. Nigerian Public Sector Finance Review, 10(2), 49–66. Okorie, H., & Nwosu, J. (2021). Regional SME disparities in Nigeria. Regional Development Review, 9(1), 76–94. Oladeji, A., & Abiola, F. (2021). Rwanda and Kenya’s SME credit models. African Credit Research Bulletin, 5(3), 40–59. Olatunji, S., Ugochukwu, J., & Hassan, L. (2024). Digital finance and SME efficiency in Lagos. Fintech Studies Quarterly, 7(2), 84–102. Onakoya, A., Ogunmokun, A., & Ude, J. (2024). Constraints to SME Lending in Sub-Saharan Africa. African Development Finance Journal, 8(1), 12–29. Onuegbu, C., Eze, M., & Ilechukwu, T. (2025). Fintechlending and SME income in Nigeria. Journal of Digital Financial Services, 4(1), 15–34. Oseke, I., & Afolabi, T. (2018). Loan structure and SME growth. Business & Economic Research, 11(1), 56–70. Oyelaran-Oyeyinka, B. (2021). Loan approval delays and SME performance. Nigerian Journal of Small Business, 3(1), 91–107. Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65–94
More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT
Bridging Legal, Financial, and Data Governance in Enterprise AI: Emerging Trends
Author: Funmilayo Ashore-Onisemo, Ebehiremen Faith Iziduh, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa
Document Governance and Organizational Learning Among Administrative Officers of Agricultural Research Institutes in Southwest Nigeria
Author: Titilayo Juliet Sodiyan1 Oluwatosin A. Ologboosere2
Macroeconomic Policies and Economic Stability in Nigeria
Author: Abel-Tariah Emmanuel Onate, Okon, Ekanem Nsikhe, Nwenyi Francis Onwe
Oil Price Shocks and Macroeconomic Adjustment: Evidence on Exchange Rate, Inflation, and Interest Rate Dynamics in Nigeria
Author: F. A. Adebimpe, A. A. Onabote
Determinants of Bank Liquidity in Nigeria
Author: Nelson Johnny Ebifemo-ere Stephen