IMPACT OF MICROFINANCE INTERVENTIONS ON SMES PERFORMANCE IN MAIDUGURI.

This study examined the impact of microfinance intervention on the performance of Small and Medium Enterprises (SMEs) in Maiduguri Metropolis, Borno State, Nigeria. The study was motivated by the need to assess how microfinance institutions contribute to SME growth through the provision of financial and non-financial services. A descriptive survey design was adopted, and data were collected from 120 SME operators who are beneficiaries of microfinance services within Maiduguri Metropolis. Structured questionnaires were used as the primary instrument of data collection, and the data obtained were analyzed using descriptive statistics and inferential tests such as regression and chi-square analysis. The findings revealed that microfinance services— particularly microcredit, savings, and training—have a significant positive impact on SME performance in terms of profitability, sales growth, and business expansion. The results further indicated that microfinance interventions have contributed to employment generation and enhanced business sustainability among SMEs in the area. However, challenges such as high interest rates, inadequate loan amounts, collateral requirements, and bureaucratic lending procedures were identified as major constraints limiting SME access to microfinance services. The study concluded that microfinance institutions play a crucial role in promoting SME development and improving economic activities in Maiduguri Metropolis. It was therefore recommended that microfinance institutions should reduce interest rates, simplify loan procedures, and provide continuous entrepreneurial training to SME operators to ensure optimal utilization of microfinance opportunities and sustainable business growth.