MICROFINANCE BANKS LENDING AND SMEs GROWTH IN NIGERIA

This paper examined the effect of microfinance banks’ lending on small & medium scale enterprises in Nigeria using descriptive approach by empirically reviewing publications in reputable journals. It was found out that microfinance banks credits have positive effect on SMEs. The study suggested that lending rate by microfinance banks should be reduced to attract SMEs owners as well as record keeping of the owners should be mandated.

Key words: MFBs, SMEs, growth, lending rate, credits.