This study is primarily concerned with the investigation of the microfinance bank institution to capital formation in Nigeria, in the analysis of this study, the unit test has been adopted and the instrument used to obtain the data are secondary data from CBN statistical bulletin. The information gathered from secondary data helps researchers analyze how microfinance bank job and meet the expectations of the government and the people. Having the dependent variable that the gross fixed capital formation test the strength of independent variables inflation, loans and advances and interest rates, which shows the change 65 percent of the dependent variable. The researcher thus before recommending that the import of products that can be produced in Nigeria should be prohibited because it will give our investors indigenous zeal and challenged to make more achievements in research. Finally therefore the researcher concluded that the financial support to micro, small and medium industries SMEs in developing countries like Nigeria.