Financial Technology Adoption and Sustainable Performance of SMES in Nigeria: A Literature Review of the Roles of Financial Inclusion and Financial Literacy

Financial technology is reshaping how small and medium-sized enterprises obtain finance, receive payments, manage transactions and interact with customers. In Nigeria, where SMEs frequently encounter restricted credit access, high transaction costs, weak financial records and infrastructural constraints, fintech offers potentially valuable routes to inclusion and improved business performance. This article critically reviews the extent and patterns of fintech adoption among Nigerian SMEs, evaluates its relationship with sustainable performance, and examines the roles of financial inclusion and financial literacy in this relationship. A critical narrative approach was adopted, with Nigerian empirical studies forming the primary evidence base and research from other emerging economies used for comparison. The literature indicates that adoption is concentrated in mobile transfers, digital banking and point-of-sale payments, while the uptake of digital credit, crowdfunding, insurance technology and integrated financial-management platforms remains uneven. Fintech can improve transaction efficiency, access to finance, customer reach, cash-flow management, resilience and business survival. However, access to technology does not automatically produce sustainable outcomes. Financial inclusion determines whether SMEs obtain useful and affordable financial services, while financial literacy influences product selection, responsible borrowing, risk management and the productive use of digital finance. Evidence remains limited by cross-sectional designs, inconsistent SME classifications and narrow performance measures. The article concludes that fintech supports sustainable SME performance when accompanied by meaningful financial inclusion, adequate financial literacy, reliable infrastructure, consumer protection and institutional support. It recommends capability-centred fintech policies, affordable digital finance and stronger longitudinal research.