Olateju,Oluwafunmilayo Adelusi

The Impact of Small and Medium Enterprises Financing on Poverty Reduction in Nigeria

Small and Medium Enterprises (SMEs) are widely recognized as important drivers of economic growth, employment creation, and income generation in Nigeria. However, many SMEs face significant challenges in obtaining adequate financing from banks, government agencies, and other financial institutions. Limited access to finance often restricts their ability to expand operations, create jobs, and contribute effectively to the economy. This study examines the impact of financing provided to SMEs on poverty reduction in Nigeria. It explores how access to financial resources influences the growth and sustainability of SMEs and assesses whether improved financing contributes to increased employment opportunities, higher household incomes, improved living standards, and overall economic development. The study also identifies the major challenges SMEs face in accessing finance and evaluates government and financial institution initiatives aimed at supporting SME development. The findings of this research are expected to provide useful insights for policymakers, financial institutions, entrepreneurs, and other stakeholders on how strengthening SME financing can serve as an effective strategy for reducing poverty and promoting sustainable economic growth in Nigeria.