Abstract
: We examined the extent to which SMEs financing influenced economic growth in Nigeria through the use of time-series data from 1999-2018. After a literature search, other factors possessing the potential to influence the dependent variable ASGDP was added to the research model. Relying on Ordinary Least Squares estimation using E-views 10.0, findings shows that lending rate reduces ASGDP by 7% and gross capital formation reduces ASGDP by 5%. On the other hand, surprisingly, credit to SMEs did not retain the massive effect on growth as seen in previous studies. We can attribute this to our choice of adopting SME contribution to GDP as our target variable. Electricity distribution increased ASGDP by 4.6%. Policy recommendations to the Federal Government and the apex bank are; capital inflows vis-à-vis affordable local loans to SMEs at single digit (interest rate) is necessary to enhance the performance of SMEs and growth simultaneously. Electricity tariffs should be heavily subsidized for small and medium scale enterprises to decrease their overhead cost.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
