0. A., DavidI. J., DavidS., Ayodeji2023-12-112023-12-112012-08-15Sanusi, L. S. (2010): Growth Prospects on the Nigerian Economy. 8th Convocation Lecture Speech delivered at Igbinedion University, Okada, Edo State. www.cenbank.org/documents/speeches.asp. Udechukwu, F.N. (2003): Survey of small and medium scale industries and their potentials in Nigeria. Paper presented at the Central Bank of Nigeria seminar on small and medium industries equity investment scheme (SMIEIS). Retrieved from www.cenbank.org/out/Publications/guidelines/dfd/2004/smieis.pdf Williams, E.S. (2006): Supporting the growth of small and medium enterprises. Central Bank of Trinidad and Tobago. Yaobin, S. (2007). Tax, small business, growth: effect of taxation on investment and cross-border trade. Paper presented at the ITD Conference on Taxation of SMEs. 160https://keffi.nsuk.edu.ng/handle/20.500.14448/2222Small and Medium Enterprises play a very important role in development of the Nigerian economy. They serve as a source of employment generation, innovation, competition, economic dynamism which ultimately lead to poverty alleviation and economic growth. This research essay tries to establish if credits allocated to SMEs have significant impact to the Nigerian economy as measured by its GDP. The data used was a secondary data from CBN annual financial report for credit to SMEs and three sectors were selected for the study which are; agriculture, manufacturing and small scale enterprises. Four hypotheses were developed for the study and they were tested using Multiple Regression Analysis to determine the relationship and contribution of SMEs to the Nigerian GDP and Correlation Analysis to measure the close association between them. It was found that the regression model developed has a significant linear relationship but credit to the three SMEs sectors studied have no significant impact to the Nigerian economy as measured by GDP using the t-test values obtained from the multiple regression analysis. Appropriate recommendations were given to help curtail the setback experiences the country is facing which are majorly due to poor and inaccessible means to credit in financing the SMEs sector.enSMEs, GDP, economic growth.Article