The Caladium 2024 Nigerian SME Report, that provides a detailed look into the SME landscape across Nigeria has been unveiled indicating that small and medium enterprises (SMEs) are facing the problem of access to finance.

The report was unveiled at the Caladium Lagos SME Bootcamp which returned for its 7th edition, and brought together Nigeria’s top industry leaders, policymakers, entrepreneurs, and aspiring business owners at the Ecobank Pan African Center in Victoria Island, Lagos.

This year’s event was packed with insightful sessions and dynamic conversations which centered around the tools and strategies that Nigerian SMEs need to overcome modern challenges.

The Caladium 2024 Nigerian SME Report was a study by Caladium Consulting to address the pressing need for accurate, sector-specific data on Nigeria’s small and medium enterprises.

Over several months, Caladium collected responses from more than 1,500 SMEs across diverse sectors, including agriculture, retail, manufacturing, and technology.

The report offers a multi-faceted analysis of the challenges these businesses face, particularly in areas like financing, operational costs, regulatory barriers, and economic uncertainty.

This report combines in-depth survey findings with insights from key industry leaders and policymakers. This ensures a well-rounded perspective that accurately reflects the realities faced by Nigerian entrepreneurs.

From field research to detailed interviews, the Caladium team combined both survey and interview techniques, and cut across multiple sectors including agriculture, manufacturing, financial services, construction, fashion, etc.

“It is important that everyone plugs into this. Push it as much as you can because ultimately everyone who has value to add to this SME ecosystem should be reading this survey and pushing it out there. Well done guys for a job well done,” said Feyisayo Alayande, Executive Secretary at the Lagos State Employment Trust Fund (LSETF), who led the launch of the report alongside the Director of Programmes, LSETF, Oyindamola Egbeyemi.

The Caladium 2024 Nigerian SME Report sheds light on critical issues, such as limited access to affordable financing.

52% of respondents identified access to affordable finance as their primary barrier to growth.

Beyond financial challenges, infrastructure issues like unreliable electricity and poor transportation impact 15.72% of SMEs, while escalating operational costs and regulatory complexities add further strain—38.12% of respondents cited foreign exchange regulations as the most significant regulatory hurdle.

These insights aim to inform policymakers while offering actionable strategies to help SMEs navigate a challenging business landscape.

“Limited access to affordable finance and regulatory support affects 52% of Nigerian SMEs,” noted Ayo Bankole Akintujoye, Convener of The Caladium Lagos SME Bootcamp and CEO of Caladium Consulting.

“We believe this report will drive awareness and mobilize stakeholders—be they in government, finance, or private sectors—to address these systemic gaps.”

Among the report’s notable findings, inflation emerged as the most significant external factor impacting SMEs, with respondents reporting an average profit reduction of up to 50% due to rising costs. The survey also revealed that while many SMEs are eager to expand, they often lack the financial tools or support systems to do so sustainably. “It is my hope that this report will open the eyes of the public to nuances that are peculiar to the MSMEs in Nigeria and Africa and how we can support them to long term profitable growth.” added Oluyemi Oloyede, MD of UAC Foods.

The event also spotlighted a pitch and grant-winning competition, in which Aro Farms Limited, an innovative farm-produce business won ₦750,000 in grants, Sheila Shittu in fashion secured ₦450,000 grant, and Balcreatives, a bead-making venture, won the third place with ₦300,000.