Abstract
Poor funding which incapacitated the Small and Medium Enterprises (SMEs) in Nigeria from assisting in creating employment opportunities motivated this work. This research investigated the effect of monetary policy instruments on SMEs financing by the Deposit Money Banks (DMBs) in Nigeria. It specifically evaluated how monetary policy instruments affect DMBs credit allocation to rural SMEs and also analysed the effect of total money supply on credit allocation to private sector. The study relied on secondary data from the Central Bank of Nigeria's Statistical bulletin and World Bank Financial Indicators with a duration of 30 years (1991- 2020). The data comprised
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