The Role of Financial Innovation in Enhancing SMEs' Capital Access and Growth in Nigeria

This study examines the role of financial innovation in enhancing small and medium-sized enterprises' (SMEs) capital access and growth in Nigeria. Using panel data from 148 Nigerian SMEs over 2010-2024, the research employs an ex-post facto research design and panel regression analysis. Results reveal a statistically significant positive relationship between financial innovation and SMEs' capital access and growth (β = 0.423, p < 0.01). The findings indicate that mobile banking, digital lending platforms, fintech solutions, and alternative financing mechanisms significantly improve SMEs' access to capital. This study contributes empirical evidence from an emerging African economy and offers practical implications for policymakers, financial institutions, and stakeholders.