This study empirically evaluates the performance of the Small and Medium Scale Enterprises (SMEs) Equity Investment Scheme in Nigeria (SMEEIS), the study tries to look into different sources of funds available to small and medium enterprises in Nigeria, the study also looked at importance of small and medium enterprises in an economy like Nigeria and its comparison to other economies in some countries. Small and Medium Enterprises are known as pioneers of industrialization to this extent, they employ high number of employees and also are the determinant of the economic growth of a nation, hence, the need for financing them for efficiency and effectiveness. The panacea for solving problems of economic growth in developing countries has been the centerpiece of industrial development of many countries like Nigeria. Banking sector of the economy with this view tries to solve some of the problems associated in small and medium scale industry. Therefore the study looked into the effectiveness of Small and Medium Enterprise Equity Investment Scheme (SMEEIS) as per initiative of the banker’s committee. The study therefore looked into views of other scholars, bankers’ committee act and also problems facing small and medium enterprises in Nigeria. The study also looked into the various schemes available to small and medium enterprises with a critical view to the scheme under study (small and medium enterprise equity investment scheme). The study found that the program/scheme failed as a result of many factors due to the initiators of the scheme are the beneficiaries. The study concludes that the aim of the scheme was not actualized as a result of conditions given by the bankers’ committee as per eligibility and other factors like infrastructure, communication facilities, lack of technology, literacy level, stiff competition of Multinational Corporations (MNCs) and Lack of steady power.