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Article Title:
Financial Inclusion, Small and Medium Scale Enterprises and Inclusive Economic Growth in Nigeria (1990-2015)
by Abdulrahman Doyinsola Hadiza and Olofin Olabode Philip

Abstract:
With the purpose of providing more information on the relationship among Small and Medium Scale Enterprises, inclusive growth and financial inclusion in Nigeria, this article examined the role of financial inclusion on the relationship between Small and Medium Scale Enterprises (SMEs) and inclusive growth in Nigeria. Both Fully Modified Ordinary Least Square ((FMOLS) and Ordinary Least Square (OLS) methods were employed. Annual data between 1990 and 2015 on inclusive growth, financial inclusion (i.e. credit to private sector, loan of rural branches of commercial banks, total deposit in rural branches of commercial banks, domestic credit, insurance and financial services and loan to agriculture), financial development, savings, rural employment, rural poverty, agricultural value added, per capita income, SMEs and rural infrastructure obtained from the publication of World Development Indicators (WDI) and Nigeria Bureau of Statistics Bulletin, 2015 Editions were used for the study. The results of the study showed that SMEs has a positive and statistical relationship with inclusive growth, while domestic credit, domestic savings, insurance and finance, agricultural loans, credit to private sectors contributed negatively to inclusive growth, except deposit of rural commercial banks, financial sector development and rural infrastructures, rural loans. The results also showed that agricultural loan, insurance and finance, rural loans, domestic savings and credit to private sectors when interacted with SMEs promoted inclusive growth, while the interaction of SMEs with domestic credit, rural deposit, and financial sectors failed to promote inclusive growth in Nigeria. These results were statistically significant.

Keywords: SMEs, Financial Inclusion, Inclusive Growth, OLS, FMOLS, Nigeria

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