Financing of Small and Medium Scale Enterprises and Economic Growth in Nigeria (1994-2015)

The reason for low performance of the industrial sector in Nigeria is mostly associated with the poor attention paid to the financing of small and medium scale enterprises which is accepted worldwide to be the engine of economic growth and development of any nation. It is for this reason; this study investigates financing of small and medium scale enterprises and economic growth in Nigeria from 1994 to 2015.

Ex-post facto research design was adopted in this study. Quantitative method was employed in this study by using Ordinary Least Square Method (OLS) as estimation technique. using multiple regression, the finding of this study was that financing of SMEs positively and significantly impact the development i.e. economic growth of Nigeria. The study therefore recommends that government should show commitment towards diversifying the economy beyond oil sector and that government should explore the advantages of SMEs to enhance economic growth in Nigeria.