This research investigated the role of Micro small and medium enterprises to the economic development of Nigeria a case study of Damaturu metropolis Yobe State. The rational for this study is to assess the contribution of the MSMEs sector and dwell on the challenges and level of government support and regulation. Thus, recommending ways of improving the sector for high economic growth. This study adapt a qualitative research method in form of an in-depth interview with eight (8) Micro Small and medium enterprises (MSMEs) managers, a government official from Small and medium enterprise development agency of Nigeria (SMEDAN) and also a credit officer of Microfinance bank in the state. However, the information generated from these sectors was utilised in analysing to reduce bias on the research work and to enable triangulation. The study reveals that Micro Small and medium enterprises is useful engine that promote economic development of a nation like Nigeria by providing employment and self-reliance. Nevertheless, challenges of such sector must especially in the north-eastern part of Nigeria where the activity of insecurity (Boko Haram insurgency) is at peak. However, the challenges of the SME sector ranges from high-interest rate on lending, access to finance, government inconsistent policies on MSME, problem of electricity, lack of awareness of SMEDAN policies and programme by SME managers. Moreover, lack of manpower, corruption by military personnel that are place on the highway checkpoint, Bad debt as a result of dead created by the insecurity, ceasing of shop by military to occupy for their residential purpose are the major barriers of SMEs in Damaturu, Yobe State.
Keywords: Role MSMEs Economic Development Nigeria
