John-Akamelu Chitom Racheal, S. Muogbo Uju


The study examined the role of commercial banks in financing small and medium size businesses in Nigeria. The main objective of the study is to examine the role of commercial banks in financing SMEs in Nigeria. Structured questionnaire were distributed to the respondents which includes the commercial banks staff and selected SMEs staff in Anambra State Nigeria. Three research hypotheses were tested using the chi-square. However, the 109 questionnaire administered to the bankers and SMEs were analyzed and presented in tables with the use of percentage and chi-square method. Therefore, the study found that small and medium size businesses encounter problem in the procurement of loans from commercial banks; also, commercial banks have contributed immensely to the development of SMEs through their loans and advances. The research therefore recommended that for small & medium enterprises to survive, there have to be collective effort between them and banks. Also the government should engage more in the development of small & medium size enterprises by creating and embarking on various incentives to encourage both small scale enterprises and commercial banks.


JEL: G21, G17, E24


Article visualizations:

Hit counter



correlation, organizational culture, promulgation, strategy and strategic plans

Full Text:



Abdesamed and Wahab (2014):”Financing Of Small And Medium Enterprises (Smes); Determinants Of Bank Loan Application”. African Journal Of Business Management. Vol 8.

Ackah.J and Sylvester Vuvor (2011): “The Challenges Faced By Small And Medium Enterprises (Smes) In Obtaining Credit In Ghana”. School Of Management.

Adebusuyi B.S (1997): “Performance Education of Small Medium Enterprises (Smes) In Nigeria” Bullion Vol.21, No.4, Central Bank Of Nigeria.

Adejuyigbe S.B and Akintunde D.O (2010); “A Study of Small and Medium Scale Industrial Development in Ondo State, Nigeria”. Submitted To The Departed Of Mechanical Engineering, Federal University Of Technology Akure, Ondo State, Nigeria.

AfolabiM.O (2013); “Growth Effect of Small and Medium Enterprises (Smes) Financing In Nigeria”. Journal of African Microeconomic Review.

Adigwe, P.K (2012); “Project Finance for Small and Medium Scale Enterprises (Smes) In Nigeria”. An International Multidisciplinary Journal, Ethiopia Vol.6, Pg 91-100.

Agbaje, Abiodun R, Osho(2015); “Commercial Banks Roles In Financing Small Scale Industries In Nigeria”: European Journal Of Accounting, Auditing And Finance Research Vol.3 Pg 52-69.

Amyas Morse (2013); “Improving Access to Finance for Small and Medium-Sized Enterprises”; Department for Business, Innovation And Skills And HM Treasury. National Audit Office.

Central Bank Of Nigerian (CBN, 2010); “SME Finance”. Www.Cenbank.Org/Devfin/Refinancing.Asp.

Eferakeya Idowu(2014); “Nigerian Small And Medium Scale Enterprises’ Access To Finance”: What Is The Story Since Bank Consolidation In 2005; International Journal Of Innovation And Applied Studies Vol.6.

Emerenu Edwin (2015); “Elements of Banking”.

European Investment Bank Group (2015); “The SME Initiative: Improving Access to Finance for Smes.”

Fernando Mendo and Fitzgerald (2006); “Theoretical Approaches to Study Smes Ebusiness Progression”. Journal of Computing and Information Technology (CIT).

Ganbold Bataa (2008): “Improving Access to Finance for SME”; International Good Experiences and Lessons for Mongolia.

Gbandi E.C and Amissah G. (2014): “Financing Options for Small and Medium Enterprises (Smes) In Nigeria”. European Scientific Journal.Vol.10, No.1

Martin Library (2011): “Challenges Facing the Banking Industry in Nigeria”. Journal of Martin Library.

Onwuka Gabriel (2015): “The Role of Commercial Banks in Financing Smes in Nigeria”; Department Of Economics, Tansian University Umunya.

Rashmi Gujrati(2013): “The Role of Smes In The Economic Development”; Masters International Journal Of Management Research And Development (MIJMRD). Vol.1.

Reuben U, Reuben G, And Baghebo M. (2014): “Small And Medium Scale Enterprises (Smes) And Nigeria’s Economic Development”, Mediterranean Journal of Social Sciences Rome-Italy, Vol.5.

San Salvador and El Salvador (2002): “The Growth Gap; A Small Enterprise Phenomenon”, In Strategic Management Journal 11.

Tawose J.O.B (2012); “Effects of Bank Credit on Industrial Performance in Nigeria”, International Business and Management, Vol.4, No.2, Pg 158-168.

Terungwa Azende (2011): “An Empirical Evaluation Of Small And Medium Enterprises Equity Investment Scheme In Nigeria”, Journal Of Accounting And Taxation, Vol.3 (5),Pg 79-90.

Krishna.M, Annie.T, Choo.C, Chang Sue Wei, Jonathan and Tankah Leong (2012): “A Study on Factors Affecting the Performance of Smes in Malaysia”. International Journal of Academic Research in Business and Social Sciences Vol.2.

Gibson Tom And Van Der Vaart (2008): “Defining Smes: A Less Imperfect Way Of Defining Small And Medium Enterprises In Developing Countries.”

Imoughele, Lawrence E. and Ismalia, Mohammed (2014): “The Impact of Commercial Bank Credit on the Growth of Small and Medium Scale Enterprises: An Econometric Evidence From Nigeria (1986-2012)”.Journal of Educational Policy and Entrepreneurial Research (JEPER) Vol.1, No.2, Pg 251-261.Www.Liste.Org.



  • There are currently no refbacks.

Copyright (c) 2018 John-Akamelu Chitom Racheal, S. Muogbo Uju

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.