The Strategic Shift: Scaling Nigeria’s SMEs Through Professional Management

By Ugo Aliogo

The struggle for business survival in Nigeria has seen various interventions over the years, but none as critical as the adoption of structured strategic management frameworks. As the backbone of the national economy, Small and Medium Enterprises (SMEs) contribute nearly 46.32% to Nigeria’s GDP. However, despite their economic weight, sustainability remains elusive; statistics show that a staggering 80% to 90% of these businesses fail within their first five years.

To gain a deeper understanding of these hurdles, I spoke with Ms. Adebimpe Adegoke, a Business Strategy and Management Consultant with over seven years of high-level experience specializing in Small and Medium Enterprises (SMEs). Her expertise in corporate growth and operational excellence was honed during a pivotal tenure in the financial services sector, most notably while leading strategic growth and customer-centric initiatives at Keystone Bank.

Drawing from her experience in the banking industry, Ms. Adegoke explained that many SME clients who approached banks seeking credit facilities to scale had their applications declined. “The issue wasn’t a lack of market demand,” she recalls. “It was a lack of corporate governance and structural integrity. Many SMEs operated without standardized bookkeeping, clear cash flow projections, or internal controls. This absence of institutional structure made them appear high-risk to credit committees, effectively cutting them off from the liquidity they needed to survive.”

“From my experience managing SME portfolios and advising business clients, I’ve seen that entrepreneurs with well-developed operational structures and a strong grasp of financial processes are far more likely to access credit, expand efficiently, and sustain performance,” Ms. Adegoke said. “Solving this structural gap goes beyond funding; it requires integrating professional management frameworks into how businesses are organized, run, and evaluated.

“Strategic management is a significant breakthrough for the local business landscape, especially in a country like Nigeria, where economic volatility remains a leading cause of business closure,” Ms. Adegoke said.

Unlike traditional “survivalist” business models, The Business Diagnostic is a comprehensive, three-stage operational audit designed to strengthen SME resilience. It conducts a deep-dive assessment of a company’s financial health, internal processes, and market positioning, followed by a structured, actionable implementation roadmap.

This framework offers a data-driven alternative capable of identifying operational inefficiencies, such as hidden “ghost” expenses, process bottlenecks, or supply chain leakages, before they escalate into business-threatening crises. Designed for low-capital implementation, The Business Diagnostic delivers measurable efficiency gains within months, making it particularly accessible to Nigeria’s emerging startups and family-owned enterprises seeking sustainable, long-term growth.

Despite the promise of these management innovations, the adoption of formal strategic planning in Nigerian SMEs has been slower than anticipated. According to Ms. Adegoke, this is due to a combination of factors, ranging from a lack of awareness to systemic operational challenges.

“One of the biggest barriers is simply awareness,” Ms. Adegoke noted. “Many business owners, particularly in the informal sector, remain unfamiliar with formal strategic audits. The traditional mindset often favors ‘hustling’ over ‘planning,’ and shifting that perception takes time. It’s essential that entrepreneurs trust the long-term reliability of structured management, but that trust must be built through education and visible success stories.”

Beyond awareness, Nigeria’s economic climate presents harsh operational hurdles. Rapidly fluctuating exchange rates and inflation mean that maintaining consistent cash flow is an ongoing struggle. “We’ve seen many businesses face liquidity crises due to poor forecasting. It is especially challenging to implement these tools where they are needed most—sectors with thin margins or unstable market demand,” Ms. Adegoke explained.

To address these issues, Ms. Adegoke emphasized the need for stronger collaboration between management experts and the public sector.

“Strengthening Nigeria’s business ecosystem is crucial. We need to invest in vocational training, mentorship, and financial literacy to ensure business owners can apply these tools consistently. Public-private partnerships and the leveraging of technology for inventory and data management are key to this evolution.”

On the financial side, many small businesses operate on limited budgets, making high-end consulting seem out of reach. “We’ve seen many businesses face liquidity crises due to poor forecasting. It is especially challenging to implement these tools where they are needed most—sectors with thin margins or unstable market demand,” Ms. Adegoke explained.

“Cost is always a consideration,” Ms. Adegoke admitted. “While consulting is an investment, sustainability requires that it be recognized as a routine protocol for any business seeking a loan or government grant. Partnerships with development banks are essential to subsidize these costs and ensure long-term accessibility.”

In the long term, Ms. Adegoke is optimistic. She believes that with continued support, strategic frameworks can become a routine part of SME operations across the country. “We’re not trying to replace the entrepreneurial spirit; we are trying to give it a foundation that lasts,” she clarified.

As Nigeria continues to navigate economic headwinds, innovations like The Business Diagnostic offer new hope for improving business longevity and economic stability. However, the road to widespread adoption is fraught with challenges. From shifting the mindsets of traditional entrepreneurs to improving financial support and infrastructure, much work remains to be done.

Yet with experts like Ms. Adegoke at the forefront, there is a clear path forward. By addressing these challenges head-on, Nigeria can strengthen its SME sector and reduce the high rate of business failure. With sustained collaboration between the public and private sectors, the future of the Nigerian business landscape can be both more resilient and more inclusive.