Journal of Finance and Bank Management

Small and Medium Scale Enterprises Financing and Development in Nigeria: A Critical Assessment
Ilori David Babafemi; Ilori Morounke Adesheye; Zenith Bank Plc, Akure

Abstract
The study reviews the funding arrangements available to SMEs; assesses how far they have contributed to meeting the finance and development needs of the SMEs sub sector in Nigeria and make useful suggestions on the way forward. The study reveals that various programmes have been put in place by the Federal Government to enhance SMEs access to finance. Similarly, financial institutions, non-financial institution and NGOs have made considerable efforts to palliate the financial challenges confronting SMEs development yet, not much have been achieved in an attempt to position the sub-sector in the mainstream of economic development. The paper recommends, among others, that development of the informal sector becomes imperative in order to leverage on its perceived advantage over other means of financing SMEs. Also commercial banks should make more funds available to the sub sector and must imbibe the culture of real sector financing as in other emerging economies of the world.

Full Text: PDF     DOI: 10.15640/jfbm.v3n1a17