This study examined the role of local governments in promoting the growth, development, and performance of Small and Medium Enterprises (SMEs) in Nigeria. The study was motivated by differing views among scholars regarding the extent to which government at various levels should intervene in SME operations and development. Relevant literature was reviewed to identify key issues surrounding government intervention in the SME sector, while secondary sources served as the principal method of data collection. The findings indicated that government, in collaboration with financial institutions, provides financial support that facilitates the establishment and development of SMEs. The study also found that various government institutions, policies, and programmes have been introduced to promote SME growth; however, further intervention is required at all levels of government to address existing challenges. The study therefore recommended stronger direct involvement by local governments through financial assistance and sensitization programmes, as well as increased collaboration between the public and private sectors through public-private partnerships (PPP) to support sustainable SME development.

Keywords: Developing, Small, Medium-Sized, Enterprises, Role and Local Government.