Abstract: The relevance of small and medium enterprises to growth and development of any nation’s economy cannot be over-emphasized. Small and medium enterprises development through effective means of bank financing have brought about debate and increase in interest among researches, policy makers and entrepreneurs which have led to issues being raised in identifying the large impact of the sub-sectors to economic growth. Small and medium scale enterprises make up the basis of industrial growth and development. The issues of microfinance bank financing is an issues that has to be treated with much importance as previous evidence shows that finance contributes to about to 25% of the success of small and medium enterprises. In order to evaluate the impact of microfinance banks on the performance banks on the performance of small and medium scale enterprises in Nigeria, questionnaires were administered to SMEs operators and microfinance bank officials. This research project had certain objectives which was achieved through the two hypothesis that were tested and questions that will be asked after which conclusion were be drawn and recommendation given. This research project made use of primary data. The conclusion has drawn at the end of this research shows that there is a significant relationship between microfinance bank and SMEs. To foster economic development, microfinance should effectively and efficiently fund small and medium scale enterprises in Nigeria an economy.