Nigeria, along with other developing countries, continues to deal with the problem of extreme poverty, despite the fact that many economic policies and initiatives have been put into place by a number of different governments. As a result, the reason for doing this research was to determine the extent to which providing capital to small and medium-sized businesses contributed, between the years 1991 and 2010, to a reduction in the level of poverty in Nigeria.
We used a method of analysis known as ordinary least square to collect the information, and the source of that information was the statistical bulletin that was released by the Central Bank of Nigeria (CBN) (OLS). The research indicates that there is a direct link between the provision of financial support to Nigeria’s small and medium-sized businesses and the country’s progress toward achieving its goal of lowering its overall poverty rate.
On the other side, the rate of inflation has an inversely proportional relationship with the number of people living in poverty. In spite of this, there is a significant positive correlation between the exchange rate and poverty in Nigeria, whereas there is a significant negative correlation between unemployment and poverty.
It was determined that there is a positive correlation between the level of poverty in Nigeria and funding for small and medium enterprises in Nigeria. This association was found to exist in Nigeria. As a consequence of this, it was proposed, amongst other things, that adequate attention should be provided to small and medium companies by focusing more resources into the sector.
This was one of the suggestions that came as a direct result of this. And that the government ought to make it a top priority to diversify the economy and develop more jobs for the increasing population in order to bring down the rate of unemployment in the country and, as a result, bring down the level of poverty that exists in the country.