EKSU Journal of Management Research (EJMR)

ACCESSIBILITY OF INTERVENTION FUNDS TO MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN SOUTH-WEST, NIGERIA

Abstract

The impact financing has on the business performance and capacity development of Micro, Small and Medium Enterprises (MSMEs) in developing the Nigerian economy cannot be over emphasised. This industry is saddled with the potential to reach out to relatively low scale investors, hence developing the home industries. However, in spite of vast interventions from government, MSMEs have long-suffered from never-ending challenges of competitive disadvantage, lack of awareness, declining sales growth, poor financing and declining in profitability. With the use of cross-sectional survey design, data was collected from a sample size of 1,560 out of a population of 6,445,452 MSMEs in South-West, Nigeria. The multiple regression results showed that MSMEs in this region had a low access to intervention funds (Anchor borrowers (ANCR), Micro, Small and Medium Enterprises Development Fund (MSMF), BOI/YES Funding, Agricultural credit Guarantee scheme Fund (ACSF), Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) and Targeted Credit Facility (TCF), as indicated by the mean score of 1.77 on the scale of 5. This was due to the lack of awareness of these intervention fund schemes. The research suggests that the Central Bank of Nigeria should guarantee an enhanced accessibility of funding to MSMEs at a reduced cost, in order to foster their expansion. Emphasis should also be placed on revitalising most of the dying intervention fund schemes as the study has shown that although they are integral in the revitalisation of the MSMEs, these intervention funds are largely unknown and not useful.