Abstract :Consequent upon the growing finance dilemma in SMEs, financial capability is receiving an increasing interest among policy makers worldwide because of its propensity to enhance SMEs’ creditworthiness. The study assesses the level of financial capabilities of SMEs in terms of these core elements; financial attitude, financial behaviour, financial literacy, and financial skills; and provide a survey instrument that would measure financial capability in Nigeria. Survey instrument in the form of structured questionnaires was employed. The study is descriptive in nature, and analyzed through the quantitative approach. Findings shows that although the overall level of financial capability of SMEs in Nigeria is generally low, the level of financial attitude and financial behaviour is high among SMEs. However, with regard to financial literacy and financial skills, the level is low. The result also shows that SMEs understanding of the core elements of financial capability remains low. This is evident in their responses to the survey instrument- the questionnaire. Towards enhancing SMEs’ financial capability and ability to take informed financial decisions, the study recommends financial education to strength financial literacy and financial skill of SMEs. The study equally calls on Government and policymakers to declare a financial capability emergency among SMEs.

Keyword : Assessment, small and medium enterprises, financial attitude, financial behaviour, financial literacy, financial skills, and financial capability