Wande Kasope Elugbaju, a Nigerian business analyst based at Ashland University in Ohio, USA, has emphasized the importance of data-informed decision-making for Nigerian SMEs to foster resilience and drive growth amid economic uncertainty. In a statement titled “Data-Driven Resilience: How Nigerian SMEs Can Harness Information to Thrive Amidst Economic Challenges,” Elugbaju shared insights on how small and medium-sized enterprises can navigate the challenges posed by Nigeria’s current economic landscape.
Elugbaju noted that SMEs in Nigeria are grappling with inflation, currency instability, and rising operational costs. However, he believes that utilizing data—even on a small scale—can empower these businesses to make more informed choices, cut costs, better target customers, and ultimately achieve growth.
He provided examples to illustrate his point:
- Retail businesses can leverage data on sales and customer behavior to identify top-selling products. For instance, an electronics store in Lagos might analyze its sales data and discover that phone accessories like chargers and cases are in high demand. By focusing on these high-demand items, the store can attract repeat customers and increase sales while minimizing overstocking of less popular products.
- In the agricultural sector, data on weather patterns and market demand can help farmers optimize their planting schedules and crop selection. A cassava farmer in Benue State could utilize weather forecasts from the Nigerian Meteorological Agency (NiMet) to mitigate the risk of crop loss. Additionally, data indicating a rising demand for maize can guide farmers to adjust their production to align with market needs, thereby reducing waste and enhancing profitability.
Elugbaju further emphasized that manufacturers can benefit significantly by tracking production rates and material usage, which can lead to streamlined operations and cost savings.
By embracing data-driven strategies, Nigerian SMEs can better navigate economic challenges, enhance operational efficiency, and position themselves for sustainable growth.