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ABSTRACT
The main aim of the study is to examine the impact of interest rates on SMEs' performance in Nigeria with focus on SMEs in Ovia North East Local Government Area of Edo state. To achieve the objectives of the study, three research questions were formulated which guided the study. Various related conceptual, theoretical and empirical literature were extensively reviewed in the second chapter of the study. Descriptive survey method was employed in the study. The population of the study consisted of 426 SMEs in Ovia North East Local Government Area of Edo state, out of which a sample of 205 was drawn out using the Krejcie and Morgan table. Purposive sampling technique was adopted to carefully select 70 Small and Medium Enterprises from the total population because they have been identified as seasoned SMEs owners in Ovia North East Local Government Area of Edo state who were technically and operationally judged SMEs operators. Primary source of data was used. The instrument used for data collection was the questionnaire. The reliability of the instrument was established based on Cronbach alpha result of 0.711 using test re-test method while for the validity; four research experts validated the instrument based on face and content validity. The Statistical Package for Social Sciences (SPSS) version 25 was employed for analyzing and testing the hypotheses. The findings of the study revealed that Interest rate, Size of loan obtainable and Access to finance had a significant negative effect on the performance of SMEs in Ovia North East Local Government Area of Edo state. Based on these findings, useful recommendations were made.
