ABSTRACT

The study investigated the impact of small and medium scale financing and unemployment reduction in Nigeria using time series data from 1992 to 2015. The study emphasized on deposit money banks credit to SMEs in Nigeria. Having analyzed the dataset using multiple regression analysis and Johansen cointegration test, it was found that a long run relationship exist between unemployment rate and measure of deposit money banks credit to SMEs in Nigeria. Also, it was found that deposit money banks credits to SMEs have not impacted significantly on unemployment reduction in Nigeria. Based on the findings, it was recommended among other things that Nigerian banks, insurance companies and all tiers of government should collaborate to develop Business Parks in all the states of the country for SMEs.