As fuel prices fluctuate, the foreign exchange market remains volatile, and government policies shift with little notice, many small and medium-sized enterprises (SMEs) in Nigeria remain uncertain of their next move.
Despite accounting for 96 percent of all businesses, contributing 48 percent to national GDP, and providing 84 percent of employment, SMEs face a complex and demanding operating environment.
Long-term survival remains a significant challenge, with only 5 to 20 percent making it past the five-year mark, according to the Small and Medium Enterprises Development Agency (SMEDAN). These pressures continue to constrain the growth potential of one of the country’s most vital economic segments.
Sopirinye Millar-Jaja, management systems analyst at Phillips Consulting Limited, said, “This is where business continuity becomes essential. It’s more than just disaster recovery; it’s a proactive approach to ensure critical operations continue, even in the face of unexpected disruptions.”
“Whether it’s a power outage, cash crunch, or policy change, continuity planning helps businesses bounce back quickly with minimal downtime. Simply put, it’s about ensuring the company keeps going, no matter what,” she said.
Many Nigerian SMEs operate without safety nets, emergency funds, or backup systems. The impact of the recent naira redesign, fuel shortages, and sudden regulatory shifts has demonstrated just how vulnerable small businesses are.
To build resilience in this unpredictable environment, SMEs must take small but deliberate steps. Continuity planning is about knowing your business well enough to protect what matters most. Here are six lessons that offer a practical path forward for SMEs seeking to prepare, adapt, and stay operational amid uncertainty:
Understand and map your critical operations: The first step is awareness. SMEs must identify the parts of their business they can’t afford to lose. This Business Impact Analysis (BIA) doesn’t have to be complex; it’s listing key products, services, people, and processes, and asking: If this stopped today, how long could I stay afloat? For instance, a logistics business should have a fuel backup plan or alternative transport options mapped out to maintain delivery timelines during scarcity.
Read also: How SMEs can scale faster with ESG
Don’t rely on just one source: In a volatile economy, diversification is a survival tactic. Over-dependence on a single supplier, payment method, product, or major client is a fast track to collapse. SMEs should source from more than one vendor, offer multiple payment options (bank transfer, POS, USSD, QR codes), explore alternative sales channels like WhatsApp storefronts, and look into digital exports if their offerings have diaspora appeal. Business continuity means having options and flexibility.
Embrace technology for flexibility: Simple digital tools can make a significant difference during disruptions. Technology ensures businesses stay connected, remain organised, and can continue service delivery even when things are unplanned. SMEs can leverage WhatsApp Business for orders, Google Drive for business records, and diverse digital payment methods like USSD and POS (now used by 45 percent of Nigerian adults for digital transactions) to keep operations fluid. Medium-sized businesses can benefit from cloud tools like Microsoft 365 or basic accounting platforms for remote financial tracking.
Build a financial buffer, even if it’s modest: Since disruptions come with immediate costs (repairs, stock replacement, salary coverage), a small financial cushion can be the difference between shutting down and staying open. SMEs should set aside a portion of profits monthly, cut back on non-essential spending, and explore cooperative or micro-savings platforms. Being financially equipped is essential for handling unexpected challenges.
Train your people and build leadership depth: A plan is useless without people who can execute it. Operations should not pause just because the founder is unavailable. SMEs must cross-train staff, enabling them to step into each other’s roles. This includes creating a basic crisis communication plan (who notifies customers/partners), sharing access to key tools with trusted team members, and fostering a culture of responsibility. Prepared systems are important, but so are prepared people.
Document and communicate your continuity plan: A disruption often escalates because teams are unsure what to do. The plan doesn’t need to be technical; it can be a simple checklist outlining steps for common disruptions like payment platform failures, staff absence, or inflation-driven price hikes. What matters is clarity. Who to contact first? What are the backup options? Where are essential documents stored? The plan must be shared, understood, and easy to activate by staff, partners, and vendors to be effective.