Small and Medium Scale Enterprises (SMEs) play significant role in\nsustainable economic growth and development, especially in developing\neconomies. In Nigeria, SMEs are facing financing problems which hinder\ntheir survival as a result they could not play the expected roles in the\neconomy. The objective of this paper is to explore the use of Islamic\nFinancing in solving SMEs financing problems. The study is exploratory;\nhence various literatures were sourced, reviewed and discussed. It was found\nthat the conventional sources of financing SMEs are grossly inaccessible,\ncostly and not feasible. As a new source of financing in the country, Islamic\nfinancing is feasible, though inadequate but relatively accessible and\ncostless. One of the recommendations is that financial institutions should be\nadopting Islamic mode of finaning when financing SMEs in the country as it\nwill go a long way in solving SMEs financing problems.
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