IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v12y2025i67p1533-1543.html
   My bibliography  Save this article

Effect of Microfinance Services on the Growth of Micro, Small and Medium Enterprises in Plateau State, Nigeria: Moderating Role of Financial Literacy

Author

Listed:
  • Shittu Ibrahim Oladipupo

    (Department of Accounting and Finance Abubakar Tafawa Balewa University, Bauchi)

  • Michael Musa Pam

    (First Bank of Nigeria Ltd)

Abstract

The study examined the moderating role of Financial Literacy on the effect Microfinance services on the growth of Micro, Small and Medium Enterprises in Plateau State, Nigeria. Survey research designed was adopted by distributing 385 questionnaires to MSMEs owners in Jos North LGA of Plateau State. 346 of the distributed questionnaires were retrieved and subjected to analysis using multiple regression. The study found that Microfinance loan has a positive and significant effect on MSMEs performance and that financial literacy significantly affects MSMEs growth as entrepreneurs with financial literacy skills demonstrated better record-keeping, improved financial planning, and increased profitability. It was recommended that savings culture should be encourage by offering incentivized savings schemes and digital banking options tailored to MSMEs owners. Ensure that loan funds are strictly used for business growth and not for personal expenses and financial literacy programs should be encouraged and financial management courses should be incorporated into loan disbursement processes.

Suggested Citation

  • Shittu Ibrahim Oladipupo & Michael Musa Pam, 2025. "Effect of Microfinance Services on the Growth of Micro, Small and Medium Enterprises in Plateau State, Nigeria: Moderating Role of Financial Literacy," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 12(7), pages 1533-1543, July.
    • Handle: RePEc:bjc:journl:v:12:y:2025:i:67:p:1533-1543
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-12-issue-7/1533-1543.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijrsi/articles/effect-of-microfinance-services-on-the-growth-of-micro-small-and-medium-enterprises-in-plateau-state-nigeria-moderating-role-of-financial-literacy/
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjc:journl:v:12:y:2025:i:67:p:1533-1543. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.