Abstract
This study examines the relationship between the development of Small and Medium Scale Industries (SMIs) and poverty reduction in the Federal Capital Territory (FCT), Abuja, between 2015 and 2025. SMIs are widely recognized as key drivers of employment creation, income generation, and grassroots economic development in developing economies such as Nigeria. Despite various government interventions and entrepreneurship support programmes, poverty and unemployment remain persistent challenges in FCT-Abuja, raising concerns about the effectiveness of SMIs in addressing socio-economic deprivation. Methodologically, the study adopts a descriptive research design using a qualitative approach based on secondary data sourced from scholarly articles, Central Bank of Nigeria reports, World Bank publications, and other development-related documents covering the period 2015–2025. The analysis focuses on the contributions of SMIs to job creation, income generation, and local economic development, as well as the structural constraints limiting their effectiveness. Findings reveal that SMIs significantly contribute to poverty reduction in FCT-Abuja through employment generation and entrepreneurial opportunities; however, their impact is constrained by inadequate infrastructure, limited access to finance, high cost of production, and inconsistent policy implementation. The study concludes that although SMIs remain vital instruments for poverty reduction, their full potential is yet to be achieved due to structural and institutional bottlenecks. It recommends improved access to credit facilities, stable policy environments, and enhanced infrastructural development to strengthen SME performance and poverty reduction outcomes in the study area.
Keywords: Small and Medium Scale Industries, Poverty Reduction
DOI: www.doi.org/10.36349/fujpam.2026.v5i01.022
author/Mabur Cinderella Fuki
journal/FUJPAM Vol. 5, No. 1
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