Abstract

Abstract: This study examines the impact of financial inclusion on the performance, productivity, and sustainability of Small and Medium Enterprises (SMEs) in rural areas of the Federal Capital Territory (FCT), Abuja, Nigeria. Using logistic regression analysis, the study finds that financial services significantly enhance SME performance, with an odds ratio of 1.379, and boost productivity and sustainability with odds ratios of 159 and 0.65, respectively. Each result is statistically significant (p < 0.05), indicating a strong positive relationship between access to finance and SME success in rural FCT. These findings underscore the vital role of financial inclusion in supporting rural SME growth and resilience. Recommendations include expanding financial services access, implementing financial literacy programs, and promoting digital finance solutions to address specific challenges faced by rural SMEs. This study highlights the importance of inclusive financial policies for fostering economic development and strengthening SMEs in underserved areas.