Inflationary Rate and Small&Medium Enterprises (SMEs) Performance in Nigeria

Small and Medium Enterprises (SMEs) are the backbone of the Nigerian economy.  This paper determined the effect of inflationary rate on SMEs performance in Nigeria using hypothetical insights and most recent empirical works. It was found out that inflation has significantly influenced SMEs performance through high production costs, high costs of goods and services, and inadequate access to loan. It was suggested by the study that more access should be granted by banks to SMEs to improve their performance in the Nigerian economy.

Key words: inflation, SMEs, performance, high cost, Nigeria