REVIEW OF REGULATIONS AND STRUCTURES FOR THE FINANCIAL WELFARE OF SMALL MEDIUM ENTERPRISES IN NIGERIA

Abstract

It is trite position that SMEs serve as catalysts for the economic growth of any nation. Notwithstanding, the situation is that in low income countries, especially in Africa SME’s survival are threatened by various socioeconomic inadequacies, especially their usual lack of access to funds. Notwithstanding governments’ claims on subsidies and economic emancipations, a complementary problem is the continuous enactment and establishment of regulations that are not streamlined and publicized enough. Therefore, SMEs persistently suffer issues ranging from lack of capital to finance their operations, to problems relating to corrupt practices and undue exposure to unregulated credit facilities, in circumstances that are contrary to the essence of the several laws. This situation has persisted despite the multitudes of outlets to protect and strengthen Micro finance. To aid stakeholders, this paper presents a qualitative, legal review of statutes and regulations for the protection of SMEs in Nigeria. This includes including existing checks and the set ups that prohibit or penalize interlopers.