adsMany Nigerian small businesses operate without formal accounting records despite stricter tax reforms and growing digital monitoring by authorities.
The weak bookkeeping culture is increasingly hurting SMEs beyond tax compliance, limiting access to loans, investors, and formal financial support at a time when businesses are already battling high borrowing costs and inflation.
For many lenders, the absence of proper records makes it difficult to assess cash flow, profitability, and repayment capacity, leaving thousands of businesses locked out of formal credit.
According to the 2025 World Bank Enterprise Survey, 94.8 percent of SMEs in Nigeria have bank accounts, yet only 20.2 percent have access to bank loans. About 42 percent are partially credit-constrained, while only 1.5 percent of investments are financed through banks, with most businesses relying on retained earnings, personal savings, and informal funding channels.adsads
The survey also shows that 23.1 percent of small firms had loan applications rejected, compared to 0.2 percent of large firms, reflecting the financing gap between small and large enterprises.
