Abstract:

While much literature exists on microfinancing and its impact on the development of micro, small and medium-scale enterprises (MSME), yet conflicting and inconsistent results abound.  This study therefore intends to add to our knowledge by utilising a recent and larger data-set collected in six States and FCT Abuja,  Nigeria in the year 2014 to re-examine the impact of microfinancing on small business performance in Nigeria.  Furthermore, the study intends to carry out a comparative analysis between the Northern and Southern Nigeria on the extent of microfinancing as well as the performance effects of three tenored-types of credit on micro, small and medium-scale enterprises (MSME).  The data set were enterprise-based and  were collected by the Nigerian Institute for Social and Economic Research (NISER) in the year 2014.  Six hundred and eighty eight enterprises were covered in the survey. The methods of data analysis rely on the use of basic descriptive statistics in addition to the Logistic Regression model which would be used in the prediction of the log of odds of using any of the microfinancing productsby MSME in the research regions.  An OLS econometric technique will also be used to determine the performance effects of microfinancing on the sampled enterprises. Policy measures that will further enhance the contributions of microfinance banks to the performance of micro, small and medium scale enterprises would be recommended.