Empirical Study of the Relationship Between Data Maturity and Business Performance in Nigerian SMEs

The relationship between an organisation's data management maturity and its business performance outcomes is theorised in large enterprise contexts but has not been empirically tested for the Nigerian small and medium enterprise sector, which operates under distinctive resource and institutional constraints. This study empirically examined the relationship between data management maturity and business performance among SMEs in Lagos (SW) and Kano (NW) States, Nigeria. A cross-sectional survey was conducted among 280 SMEs with at least five employees and one year of operation, using a validated data maturity questionnaire measuring five dimensions: data collection, data storage, data quality, data analytics use, and data governance. Business performance was assessed through self-reported revenue growth, customer retention rate, and operational efficiency improvement over a two-year period. Structural equation modelling was applied. Results showed that data analytics use was the strongest positive predictor of revenue growth (beta = 0.52, p < 0.001) and customer retention (beta = 0.43, p < 0.001). Data quality showed a significant positive effect on operational efficiency (beta = 0.48, p < 0.001). Lagos SMEs showed higher data maturity scores than Kano SMEs across all five dimensions (p < 0.001). Data governance maturity was the lowest-scoring dimension in both locations. The study fills an empirical gap in the SME analytics-performance relationship for Nigeria and recommends data maturity training programmes through SMEDAN, simplified analytics tools for SMEs, and data literacy integration into BDS curricula. Keywords: data maturity, business performance, SMEs, Nigeria, structural equation modelling