Abstract: Business management has traditionally been concerned with value of the organization, valuing processes and the performance of the organization. Hence, relational capital emerges as a result of well-thought actions. It depends on strategic decisions and organized actions. Creation and development of relational capital is considerably brought down to creation of conditions, which would enable to initiate, shape, develop and maintain relationships between members of a given organization, and between the organization and subjects from its surrounding. The study examines the effect of Relational Capital (RC) on the performance of SMEs in North central Nigeria. Despite the fact that the significance of RC is always expanding, numerous SMEs confront issues with its administration, for the most part because of estimation challenges on external and internal relation capital.