Godwin Ozoemenam Achumie: Bridging theory and practice in finance and business

Godwin Ozoemenam Achumie is a thought leader in finance, administration and research. In this interview, he speaks on his contribution to bridging Theory and Practice in Finance and Business.

Share with us a real-life issue you’ve encountered in your career and how you addressed it?
One issue that stands out in my career is a cash flow management challenge I encountered while working at Chem Travels and Logistics LTD. Cash flow is often a silent killer for businesses, particularly in Nigeria, where SMEs make up over 96% of the total number of businesses, contribute nearly 50% to the GDP, and account for over 80% of the country’s employment. Despite these impressive numbers, many SMEs face significant operational and financial challenges, and this was the case at Chem Travels.

At the time, while the company’s revenue streams were steady, operational inefficiencies in tracking invoices and reconciling payments led to constant cash shortages. Payment processing delays often left vendors dissatisfied, and internally, we struggled to align expenses with revenue. For a business operating in Nigeria’s fast-paced logistics industry, where agility and reliability are critical, this issue posed a serious threat to the company’s reputation and sustainability.

That sounds like a pressing challenge, especially in Nigeria’s dynamic business environment. How did you approach resolving it?
The first step was to conduct a detailed analysis of the company’s financial workflows. We needed to pinpoint exactly where the breakdowns were occurring. After assessing the processes, we found that the company was relying heavily on manual record-keeping and invoicing systems, which are both prone to human error and inefficiencies. Considering that SMEs in Nigeria face an average invoice payment delay of up to 90 days compared to the global average of 45 days, the urgency to fix this was clear.

I spearheaded the transition to an automated accounting system. This system digitized processes such as invoicing, expense tracking, and payment reconciliation, which allowed for real-time monitoring and reporting. Beyond just adopting new technology, I worked closely with the team to ensure proper training and smooth integration of the system. Additionally, I implemented stricter policies on invoice submission timelines and approval procedures, ensuring that accounts payable and receivable were consistently managed.

Within three months of implementing these changes, the results were evident. Payment delays were reduced by 60%, vendor satisfaction improved significantly, and for the first time in years, the company had a clear overview of its cash flow. By the end of that fiscal year, we identified and implemented cost-saving measures that increased profitability by 15%, even amidst Nigeria’s challenging economic environment, marked by high inflation rates and fluctuating exchange rates.

Those are remarkable results. What lessons did you take away from this experience that other businesses in Nigeria could benefit from?
The experience reinforced three key lessons for me. First, technology is an indispensable tool in today’s business landscape. However, technology alone cannot solve problems—it must be paired with proper implementation and training. One report indicates that over 60% of Nigerian SMEs struggle with digital adoption because of insufficient training and resistance to change. My approach was to involve the team from the outset and make them see the benefits of the new system.

Second, proactive problem-solving is crucial. Many issues, especially in cash flow management, don’t appear overnight; they develop gradually. Regular financial reviews and audits are essential to identify red flags early. For Nigerian SMEs, which face high borrowing costs and limited access to credit—estimated at only 5% penetration for formal financial services—cash flow mismanagement can be catastrophic.

Finally, adaptability is key. Every organization operates within its own unique set of circumstances. What works in one context may not necessarily work in another. The key is to understand your environment, such as Nigeria’s regulatory complexities and market dynamics, and tailor solutions accordingly.

You’ve clearly connected your hands-on experience to the broader context. How does this align with your research efforts?
My research is deeply influenced by the real-world challenges I’ve faced. For example, my work on “Post-Project Financial Auditing as a Continuous Improvement Tool for SMEs” was inspired by observing how proper auditing can transform small businesses. In Nigeria, where SMEs account for 96% of all businesses but face a survival rate of less than five years, adopting structured financial practices like project auditing can be a game-changer.

Similarly, my research on “Mitigating Bias in Credit Decisions” reflects my observation of how systemic inequalities limit SMEs’ access to financing. It’s estimated that over 80% of Nigerian SMEs cite lack of funding as their biggest challenge, often due to credit decisions based on biased or incomplete information. In this paper, I explore how advanced statistical methods can ensure fairer credit evaluations and broaden financial inclusion.

Another area of research that is closely tied to my professional experience is “Supply Chain Optimization in Technology Businesses.” This work is critical for Nigeria, where supply chain disruptions, caused by factors like inadequate infrastructure and policy inconsistencies, cost businesses billions annually. By providing a conceptual framework for operational excellence, the study aims to help businesses overcome these barriers and thrive in a competitive environment.

It’s clear that you have a passion for SMEs and their development. Why do you think they are so critical to Nigeria’s economy?
SMEs are the engine of economic growth in Nigeria. They employ over 50 million people and contribute nearly half of the nation’s GDP. Despite this, they face numerous challenges, such as limited access to financing, inadequate infrastructure, and policy inconsistencies. If we can empower SMEs through better financial practices, access to technology, and supportive policies, the ripple effect on job creation and economic stability will be profound.

Take, for instance, the impact of adopting digital solutions in SME operations. Studies show that SMEs leveraging technology experience growth rates 20-30% higher than those that don’t. However, with over 90% of Nigerian businesses categorized as informal, digital literacy and access to tools remain significant barriers. My focus, both in practice and research, is on breaking down these barriers and creating scalable solutions.

What advice would you give to young professionals who want to follow in your footsteps and make an impact in Nigeria?
My advice is simple but powerful. First, commit to continuous learning. The world is changing rapidly, and staying relevant means constantly updating your knowledge and skills. In Nigeria, where industries like fintech, agriculture, and logistics are undergoing rapid transformation, professionals who stay ahead of trends will always find opportunities.

Second, don’t be afraid to tackle difficult problems. Some of the most rewarding moments in my career have come from solving challenges that seemed insurmountable at first. Resilience is a crucial quality, especially in a market as dynamic and unpredictable as Nigeria’s.

Finally, collaboration is key. No one succeeds in isolation. Whether it’s building strong relationships within your organization, engaging with clients, or collaborating on research projects, teamwork is critical to achieving long-term success.