| dc.contributor.author | Osigwe, Augustine | |
| dc.contributor.author | Onyimadu, Chukwuemeka | |
| dc.date.accessioned | 2021-09-14T11:52:59Z | |
| dc.date.available | 2021-09-14T11:52:59Z | |
| dc.date.issued | 2018-02 | |
| dc.identifier.uri | https://ir.nilds.gov.ng/handle/123456789/105 | |
| dc.description | Small and Medium Enterprises (SMEs) contribute positively to economic growth through
their positive effects on most socio-economic indices. Against this backdrop, this sector
analysis examines whether Deposit Money Banks credit to the SMEs is enough to stimulate
economic growth in Nigeria. Analysis of data shows that although loans to the private
sector consistently increased from 2010 to 2016, the fraction of these loans that went to
SMEs declined drastically, standing at 0.07% as at 2016. Also, with correlation statistics of
– 0.13, we found that higher interest rates are associated with lower growth rates of loans
to SMEs. This finding corroborate the huge problem of access to finance by SMEs. A review
of cross country experience towards promoting SMEs access to finance presents credit
models that Nigeria can tap into. In India, we learned that credit ratings for SMEs
subsidized by the Government boost their access to funding whereas in Indonesia we
discovered that in 2012, a legislation was passed requiring banks to increase the
proportion of their loans advanced to SMEs to 20% by 2018. On the basis of our findings, a
number of punchy recommendations that will aid the National Assembly consider how to
boost credit to the SMEs so as to stimulate economic growth in Nigeria are presented | en_US |
| dc.language.iso | en | en_US |
| dc.publisher | Department of Economic and Social Research | en_US |
| dc.relation.ispartofseries | DESR-Research Issue Brief;Issue 2, No. 4 | |
| dc.subject | SMEs | en_US |
| dc.subject | Deposit Money Banks | en_US |
| dc.subject | Economic Growth in Nigeria | en_US |
| dc.subject | Economic Growth | en_US |
| dc.subject | Legislative Consideration | en_US |
| dc.subject | Small and Medium Enterprises | en_US |
| dc.title | Are Deposit Money Banks’ Credit to SMEs Enough to Stimulate Economic Growth in Nigeria? Issues for Legislative Consideration | en_US |
| dc.type | Working Paper | en_US |
