The paper assesses effect of 2004 banking reforms on loan financing of the SMEs in Nigeria. A sample size of 500 was randomly chosen and Chi square test provided analysis on the survey data, and Cronbach’s alpha, Split-half test and Guttman’s lambda provided the analysis for testing the reliability. The paper concludes that there is no significant effect of 2004 banking reform on loan financing of SME in Nigeria. This signifies that there are some constraints which restricted access to loans from the banks for SMEs in Nigeria. The paper recommends that Central Bank of Nigeria, CBN, and Nigerian government should provide general procedures for accessing the loans so as to remove unnecessary constraints from banks.
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