Al-Hikmah University Journal

The study employed the Error Correction Model to examine the effect of financial inclusion on small and medium enterprises in Nigeria from 1990 – 2019. A co-integration relationship exists between small and medium enterprises and financial inclusion (measured by deposit/savings, access to financial institutions, and the credit to the private sector). The result revealed that financial inclusion (deposit/savings and access to banks) has a positive and statistically significant effect on small and medium enterprises in the study period. However, access to credit has a significant and negative effect on small and medium enterprises. Based on these findings, policymakers are therefore advised to put in place strategies that will further enhance the level of financial inclusion through access to financial institutions, deposit/savings, and provide favorable lending facilities climate to ease access to credit in Nigeria to improve SME's