Obliterating The Financial Challenges Extenuating SMEs in Lagos, Nigeria Through The Instrumentality of Mushārakah: A Qualitative Assessment

Purpose: The rate at which financial challenges are mitigating the growth of SMEs in Nigeria requires diligent attention from researchers. This research work hereby aims to obliterate the financial challenges extenuating SMEs in Lagos, Nigeria, through the instrumentality of Mushārakah. Methodology: A qualitative case study approach was employed to achieve this objective. Nineteen (19) respondents who fit the criteria were interviewed, and their responses were analyzed using a qualitative method of data analysis. Findings: The study revealed that many SME owners are not fully aware of the operation of Islamic banks in Nigeria. Respondents equally revealed that they used private funds when they started their business. However, they are now better exposed to the benefits of the Islamic banking system. SMEs in Nigeria do not maintain proper books of account; during the loan inspection process, SME owners were advised to keep an appropriate record of the goods they sold and their earnings. This study concluded that entrepreneurs are not fully aware of the terms of Islamic Financing; SME owners are willing to embrace Islamic funding since it is free from interest and less expensive. This study recommended that more SMEs approach Islamic banks for financial assistance to obliterate the financial challenges extenuating SMEs in Lagos, Nigeria, through the instrumentality of Mushārakah. Significance: This research is among the few studies highlighting the financial challenges extenuating SME operations in Lagos, Nigeria, and established Mushārakah as a vital instrument to address the financial challenges extenuating SME operations in Lagos.