The Impact of Bank Lending on the Performance of Small and Medium Scale Enterprises (SMEs) in Nigeria

Ele; Linus Egwu

doi:10.56201/wjeds.v10.no6.2025.pg218.232

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The Impact of Bank Lending on the Performance of Small and Medium Scale Enterprises (SMEs) in Nigeria

Ele, Linus Egwu

Abstract

This study was conducted to examine the relationship between bank lending and the performance of small and medium scale enterprises in Nigeria. Government has attempted to adopt measures to improve SMEs but have not done much to involve bank lending in financing small and medium scale enterprises, therefore the study seeks to investigate, if bank lending has any impact on the performance of small and medium scale enterprises in Nigeria. Data used in the study was secondary data which was obtained from the statistical bulletin of the Central Bank of Nigeria. The data were analyzed using the simple regression method. A result from the analysis of the study reveals that there is a significant relationship between bank lending and the performance on small and medium enterprises in Nigeria. And that bank lending has contributed positively to the development of the small and medium scale enterprises in Nigeria. The study recommends that, the Central Bank of Nigeria should encourage bank lending to finance small and medium scale enterprises. That government should come up with a scheme that will enable small and medium scale enterprises to be able to obtain loans without collateral but guaranteed by the government.

Keywords

Bank lending. Bank performanceFinancingSmall and Medium Scale Enterprises

References

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The Impact of Bank Lending on the Performance of Small and Medium Scale Enterprises (SMEs) in Nigeria

Abstract

Keywords

References

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