Impact of Microfinance on Small and Medium Enterprises (SMEs) in Nigeria.

Microfinance has emerged as a crucial financial tool aimed at enhancing the economic prospects of small and medium enterprises (SMEs), particularly in developing countries like Nigeria. This study analyzes the impact of microfinance on the growth and sustainability of SMEs, examining both the benefits and challenges associated with microcredit access. By employing a mixed-methods approach that includes qualitative interviews and quantitative analysis, we find that microfinance significantly contributes to increasing business productivity and income among SMEs in Nigeria. However, challenges such as high-interest rates and inadequate financial literacy hinder the full realization of these benefits. Recommendations for policy improvements and further research are also discussed.