ABSTRACT

The subject of this research being multi-dimensional in scope lends itself to valid interpretation and empirical analysis of the contributions of' deposit money banks in the financing of small and medium scale enterprise that are regarded as agent of economic growth and development. To this end relevant research question were asked amongst which include; what extent DMBs has fared in providing the necessary finance crucial to the sustenance of SME and considering the current slate of' the Nigeria economy, what. are the implications of' the contributions of DMBs'? To answer this question, the study empirically tested some hypotheses amongst which include a test of' the extent of' effect between the level of [)MBs financing of' SMFs and there ( i.e. SMEs) contributions to the growth of' the economy .The  findings thus reveal that increase in the financing of small and the medium scale. enterprises will positively affect the progress of SMEs and by implication affect positively the growth of the economy .however, the study also revealed that the level of financing of' SMIEs within the Nigerian context is quiet low which thus led to the acceptance of the null hypotheses. In view of this the recommendation put forward by the researcher 1'equ i red that if' DMl3s financing to SMEs is combined with adequate prudential guidelines and strong supervision of' banking and capital market, improved financial intermediation capable of' raising the level of' other relevant causal factors will be achieved. 'This scenario will invariably spur the growth of' the economy.