ABSTRACT

The study investigates the impact of small and medium scale industries on the Nigerian
economy, spanning from 2006 to 2018. The study adopted Ordinary Least Square (OLS)
Linear Specification model. Using unit root test, the work shows that small scale industries
significantly contributed to the economic growth in Nigeria despite poor funding by
commercial banks. The work recommends among others that government should improve
its monetary policies so as to reduce to an acceptable level, the rate of interests charged by
commercial banks as well as encouraging rural based industrialization, whereby investors
are encouraged to establish small and medium scale industries that would be based entirely
on local raw materials, machines and equipments.