ABSTRACT
This study examined the contributions of Small and medium enterprises equity investment
scheme to Nigerian economic growth in the perspective of the manufacturing sector in
Nigeria SMEEIS. A perfect research into the role of SMEEIS in the manufacturing sector
cannot be carried out without an in-depth analysis, contributions roles and operations of
SME . This study became necessary to the Nigerian Entrepreneurs, who have assisted and
contributed to the country’s gross national product and have also played vital roles in the
lives of the people. The Nigeria economy cannot be driven by the government and public
sector alone hence the need for SMEEIS. The initiative was in response to the Federal
Government’s concerns and policy measures for the promotion of Small and Medium
Enterprises (SMEs) as vehicles for rapid industrialization, sustainable economic
development, poverty alleviation and employment generation. SMEEIS is a voluntary
initiative of the bankers committee approved at its 245th meeting held on 1st December,
1999. SMEEIS is acronym for the small and medium enterprises equity investment
scheme”, which requires all banks in Nigeria to set aside annually ten percent (10%) of
their profit before tax for equity investment and promotion of small and medium enterprises
in Nigeria.
The objective of the study was to determine the role of small and medium
enterprises equity investment scheme in the manufacturing sector and to ascertain the
contribution of SMEEIS in manufacturing sector. The study used both primary and
secondary sources of data collection. The statistical tools used were frequency distribution,
tables, percentages and chi-square (c2) in the analysis of data. Test of hypotheses shows
That the weaknesses and threats of SMEEIS are not greater than the strengths and
opportunities; that SMEEIS has been able to contribute meaningful to manufacturing
sector; That SMEEIS does not lack the skill to manage organizational changes that SMEEIS
does not hinder creativity and innovation. The study shows that lack critical infrastructure
affected the smooth running and operations of SMEEIS, The research made the following
recommendations. The CBN should review its policies on SMEEIS by liaising with the
National Assembly to put in place a very good legislation to support and sustain SMEEIS.
For SMEEIS to be a driving force in the Nigeria economy, critical infrastructure such as good
access roads, energy and good telecommunication network must be in place. Moreover, the
CBN should also support the banks by putting in place a standardised policy framework on
its intervention fund on bailout, restructure and refinancing of SME especially in the
manufacturing sector through the use of banks of industries and AMCON to purchase ailing
credits that are given to the manufacturing sector from banks at a concessionary rate.
