Globally, small and medium-sized businesses (SMEs) are acknowledged as key contributors to economic expansion. SMEs are seen as vital components of the Nigerian economy since they contribute significantly to job creation, income generation, and poverty alleviation. However, despite all these achievements of SMEs their performance in Nigeria has been a subject of concern for several years. This study measured empirically how SMEs have affected Nigeria’s economic growth using key macroeconomic indicators as the Commercial Bank Loan, Patent Application, Trade, Value Added Tax, among others. The study employed Bound tests and Co-Integrating Regression on data collected from World Bank database, United Nations Conference on Trade and Development (UNCTAD) data statistics, CBN Statistical Bulletin and World Investment Reports (2023). The study discovered that while patent applications has a negative effect on Nigerian economic growth, loans from commercial banks, inflation, value-added tax, labour force participation, and SME trade have a favorable impact. In order to support SMEs and growth in the Nigerian economy, it was suggested that a combination of fiscal and monetary policies be used by the Nigerian government. Policymakers should streamline loan application processes, reducing bureaucratic hurdles, and improving credit scoring mechanisms. The government should also foster more public finance, private led initiatives to provide SMEs with all they need to thrive in the economy.
Keywords: Nigeria, Small and Medium Scale enterprises., economic growth
