Abstract
This study examines the impact of savings culture on the sustainability of Small and Medium Enterprises (SMEs) in Gwagwalada Area Council, Abuja. The study adopted a survey research design. Data were collected through the administration of structured questionnaires to 240 randomly selected SME operators across different business sectors in Gwagwalada. The data were analysed using descriptive statistics and inferential tests at the 5% significance level. The findings revealed that access to formal financial services significantly affects SMEs' savings culture, but high transaction costs discourage structured savings. Financial literacy was also found to play a critical role in shaping SME saving behaviour, although knowledge gaps remain. Furthermore, infrastructural challenges, such as poor electricity supply, weak road networks, and underdeveloped digital platforms, negatively affect SME sustainability. Finally, financial support measures such as government incentives, affordable digital banking services, and training programs were shown to have a significant positive effect on improving SME savings culture and resilience. The study concludes that both individual saving practices and broader systemic factors strongly influence SME sustainability in Gwagwalada. It recommends that the government and financial institutions provide affordable financial Services, expand digital financial services, and offer targeted financial literacy programs for entrepreneurs. Infrastructure development should also be prioritised to lower operational costs and encourage higher savings. Strengthening financial support measures through tax reliefs, concessional loans, and savings-linked incentives will further enhance SMEs' capacity to save and sustain their operations.