THE IMPACT OF SMALL AND MEDIUM ENTERPRISES FINANCING ON POVERTY REDUCTION IN NIGERIA
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ABSTRACT
Nigeria, like other developing countries, has continued to grapple with the menace of poverty despite several economic policies and programmes implemented by various governments. This study was therefore undertaken to assess the impact of small and medium enterprises financing on poverty reduction in Nigeria from 1991 to 2010. Using ordinary least square (OLS) analytical technique, data from the central bank of Nigeria (CBN) statistical bulletin were obtained. Findings revealed that there is a significant relationship between small and medium enterprises financing and poverty reduction in Nigeria. However, inflation rate has a negative relationship with poverty. Nonetheless, exchange rate has a positive relationship with poverty, whereas unemployment has a strong negative correlation with poverty in Nigeria. It was concluded that small and medium enterprises financing has a positive relationship with poverty in Nigeria. It was therefore recommended inter alias that adequate attention should be given to small and medium enterprises through channeling of more resources to the sector. And that the government should as a matter of urgency diversify the economy and create more jobs for the increasing population to reduce the unemployment rate in the country, thereby reducing poverty.
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