Developing a Data Analytics Capability Framework for Nigerian Small and Medium Enterprises

Small and medium enterprises in Nigeria are increasingly recognising the competitive advantage of data-driven decision-making, yet the data analytics capability needed to realise this advantage is poorly understood and rarely assessed in the Nigerian SME context. This study develops and validates a data analytics capability framework for Nigerian SMEs across South West and South South Nigeria. A professional framework development methodology was adopted, drawing on the DAMA Data Management Body of Knowledge, academic literature on data analytics capability models, and primary research through 40 structured interviews with business owners, data analysts, and IT managers at SMEs in Lagos, Benin City, and Port Harcourt. Findings reveal that data collection and basic reporting capabilities are present in 62 percent of surveyed SMEs, while predictive analytics capability exists in only 11 percent. The primary capability gaps are data literacy among business owners, absence of structured data governance practices, and limited integration between business applications and analytics tools. SMEs using cloud-based analytics tools (Power BI, Google Looker Studio) demonstrated significantly higher decision-making confidence and revenue growth rates than those relying on spreadsheet-only analysis. The proposed Nigerian SME Data Analytics Capability Framework covers five dimensions: data literacy, data infrastructure, analytics tools, governance, and decision integration. A maturity model with four progression levels enables SMEs to assess their current position and identify priority improvement steps. Adoption of the framework by the Small and Medium Enterprise Development Agency of Nigeria as a digital capacity tool is recommended.

Keywords: data analytics capability, SMEs, Nigeria, data governance, business intelligence