In the fast-moving world of business, survival is no longer enough—growth requires foresight, and foresight requires data. For small and medium-sized enterprises (SMEs), which form the backbone of Nigeria’s economy, the ability to interpret and act on information can mean the difference between closing doors after a few years or thriving for decades. Esther Oguntegbe, a seasoned strategy and execution consultant, stresses that data is no longer just a byproduct of business—it is the foundation of smarter decision-making.

“The challenge is real,” she says. “Over 80 per cent of SMEs in Nigeria do not survive past their fifth year. Yet businesses that leverage data thoughtfully, rather than relying on gut feeling alone, have a far better chance of lasting and growing.”

SMEs contribute significantly to national GDP and employment, making their success a matter of broader economic importance. According to Oguntegbe, data is the raw material of commerce, but its power only comes from the insight drawn from it. “Strategy begins when data becomes insight,” she notes.

Even small businesses can benefit from simple sources: sales records, customer feedback, or social media interactions can reveal patterns that guide decisions. A retailer, for instance, can track sales trends to reduce excess stock, while a bakery might analyse daily sales to minimise waste and ensure fresh products reach customers. Studies suggest SMEs that adopt data-driven practices can see 15–20 per cent higher profitability compared to those that operate on instinct alone.

Affordable digital tools have made this process more accessible than ever. Globally, about 77 per cent of small businesses now use AI or analytics tools in at least one part of their operations, improving efficiency, predicting trends, and supporting growth.

However, Oguntegbe warns that numbers without context can mislead. Data must be accurate, ethical, and interpreted wisely. “Machines can process information, but only people can understand the nuance, context, and human implications behind it,” she says.

She advises SMEs to start small. Pick a single, measurable goal—like boosting customer retention or reducing late payments—and let insights guide gradual improvements. “Start small, learn fast, scale wisely. That’s how data becomes a habit, not a headache,” she explains.

In a competitive marketplace, the quiet power of understanding your business through data cannot be overstated. “Data doesn’t just tell you what happened,” Oguntegbe concludes. “It shows you what’s possible.”