EFFECT OF FINANCIAL INTEGRATION ON THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN ABUJA, NIGERIA

Authors

Muhammed Shaba Ibrahim Department of Business Administration, Bingham University, Karu, Nigeria

Financial Integration, MSME Performance, Credit Accessibility, Insurance Coverage, Micro, Small, and Medium Enterprises

This study examined the effect of Financial Integration on the performance of

Micro, Small, and Medium Enterprises (MSMEs) in Abuja, Nigeria, with a focus on credit

accessibility and insurance coverage as key dimensions of Financial Integration. The main

objective was to assess how access to financial services influences the growth and sustainability

of MSMEs in the region. The research adopted a quantitative approach, utilising a survey design

to collect data from a population of 2,825 MSMEs. The sample size was determined using the

Krejcie and Morgan (1970) formula, resulting in a sample of 373 MSMEs, which were selected

through a stratified random sampling technique to ensure representation across various sectors and

locations. Data were collected using structured questionnaires and analysed using descriptive

statistics, Pearson correlation, and multiple regression analysis. The findings revealed that both

credit accessibility and insurance coverage had significant positive impacts on MSME

performance, with insurance coverage showing a marginally stronger influence. The study

concluded that Financial Integration plays a critical role in enhancing the performance of MSMEs

in Abuja, Nigeria. Recommendations include expanding access to credit and insurance services,

implementing financial literacy programs, and improving financial infrastructure to support the

growth and sustainability of MSMEs in the region. These measures are essential for fostering

economic development and reducing poverty in Abuja, Nigeria.