The Impact of COVID-19 on Small and Medium-Sized Enterprises in Nigeria

This study investigates the impact of the COVID-19 pandemic on small and medium-sized enterprises (SMEs) in Nigeria, with a focus on financial, operational, and policy-related dimensions. As vital contributors to Nigeria’s economy—accounting for 49.5% of GDP and employing over 80% of the private workforce—SMEs were disproportionately affected by pandemic-induced disruptions, including lockdowns, supply chain breakdowns, and declining consumer demand. Drawing on a mixed-methods approach, the research combines survey data from 250 SMEs across Lagos, Abuja, and Port Harcourt with qualitative analysis of policy documents using the Smith Model framework. Findings reveal significant sectoral disparities: while ICT and e-commerce firms recorded a 12% revenue increase due to digital adaptability, traditional sectors such as hospitality and manufacturing suffered losses exceeding 50%. Only 24% of SMEs accessed the Central Bank of Nigeria’s ₦50 billion credit facility, highlighting systemic barriers such as bureaucratic inefficiencies and restrictive eligibility criteria. Digital transformation emerged as a key resilience driver, with firms adopting e-commerce platforms showing a negative correlation with revenue decline (r = –0.45, <i>p</i> < 0.01). Theoretically, the study extends the Smith Model by incorporating “shock responsiveness” to reflect crisis-era policymaking realities. Practically, it offers a roadmap for strengthening SME resilience through policy agility, digital infrastructure investment, and targeted financial inclusion. The research contributes to crisis management discourse in developing economies and underscores the urgency of redesigning support systems that are inclusive, adaptive, and execution-focused.