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Relating Light Enterprises’ Loan Access to Repayment in Two North-central Nigerian Cities


Investigation of the relationship between the type of small and medium enterprises (SMEs) granted loans by deposit money banks (DMBs) and the degree of punctuality with which the SMEs repaid such loans in Abuja and Ilorin, North central Nigeria was the focus of this study. Data obtained from DMBs in the cities were analysed using descriptive and inferential statistics. The results established that DMBs granted loan access priority to the SMEs that promptly repaid their loans. Service Industries Group II consisting of hospitals, hotels, eateries and schools; Manufacturing Group I comprising of food, medical processing & allied firms and Service Industries Group I, made up of petroleum and gas filling stations which repaid their loan punctually were the ones granted high consideration for secured loans by the DMBs in the cities. On the basis of these findings, the study recommended that DMBs should organize regular seminars for proprietors of SMEs on the critical criteria they require in order to smoothly access loanable funds from them. Alsoas a means of boosting local production of essential commodities and providing employment for many idle Nigerian youths, the light manufacturing groups should be trained on the method of running profitable production business. The Central Bank of Nigeria should similarly intensify effort in providing support to the SME groups in the areas of funding and capacity building so as to ease the Nigerian economy from intermittent recessions.


Light enterprises, loan access, loan repayment, North central Nigerian cities

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