FINANCIAL INCLUSION AND PERFORMANCE OF SMALL AND MEDIUM SCALE INDUSTRIES IN FCT, ABUJA.

Abstract

The inadequate access to financial services continues to pose a significant challenge to the growth and sustainability of small and medium-sized enterprises (SMEs) in Nigeria, particularly within the Federal Capital Territory (FCT), Abuja. This study aimed to investigate the impact of financial inclusion specifically through the use of mobile banking, electronic wallets (e-wallets), and point-of-sale (POS) technologies on the performance of SMEs in the FCT, focusing on revenue generation, enterprise expansion, and operational efficiency. A descriptive survey research design was adopted. The study targeted a total population of 613,492 SMEs registered in the FCT, as reported by the National Bureau of Statistics (2021). Using Krejcie and Morgan’s sampling formula, a sample size of 384 SMEs was determined. Stratified random sampling was employed to ensure proportional representation across all six area councils within the FCT. Data collection was carried out using a structured questionnaire designed with a 5-point Likert scale. The data were analysed using both descriptive and inferential statistics, with regression analysis conducted via SPSS version 25. The findings revealed that mobile banking has a significant positive impact on revenue performance. Additionally, the use of e-wallets was shown to substantially support business growth, while POS systems were found to significantly improve operational efficiency. Based on these findings, the study concludes that digital financial inclusion is a key driver of improved SME performance in Abuja. Consequently, the study recommends that SMEs embrace these digital financial tools. Furthermore, it urges policymakers and financial service providers to invest in strengthening fintech infrastructure, implementing digital literacy initiatives, and introducing supportive incentives to foster wider adoption and utilization of these technologies.