By 
In the heart of Nigeria’s bustling entrepreneurial landscape, small businesses open their doors daily—full of ambition but often lacking one vital tool: financial literacy. While policies and programs have tried to support SMEs, one voice has been consistently urging a different, often overlooked solution. Julia Nwanya, a respected financial analyst and educator, is championing the idea that financial literacy, not just funding, is the silent engine that determines whether Nigerian businesses survive or fail.
Julia Nwanya
As someone who has closely analyzed the operational struggles of Nigerian SMEs, Nwanya knows the terrain well. During her time at Ibeto Group, she reviewed financial operations across multiple sectors, and a clear pattern emerged: poor financial management was quietly eroding the dreams of countless entrepreneurs.
“Many SME owners mistake revenue for profit. They don’t track cash flow, and often have no clarity on their own business performance,” she observes.
Her findings are backed by national data. A PwC study reports that 67% of Nigerian small business owners lack basic financial skills, and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) estimates that poor financial practices cost the economy a staggering ₦4.8 trillion annually.
Four Pillars of Business Financial Literacy
To help tackle this silent crisis, Nwanya has identified what she calls the “Four Pillars of Business Financial Literacy”: recordkeeping, cash flow management, funding knowledge, and long-term financial planning. According to her, these are not just accounting terms, but survival tools.
“When businesses start keeping financial records and separate personal spending from business accounts, their entire outlook changes,” she explains.
Indeed, a recent study showed that SMEs with structured financial practices are up to 3.7 times more likely to survive and grow.
But for Nwanya, it’s not just about theory, it’s about access. She’s a strong advocate for digital transformation, noting that technology levels the playing field.
“A mobile accounting app can do what a full accounting department once did, but entrepreneurs need the financial knowledge to use it effectively,” she says. Yet despite this, only 31% of SMEs have adopted digital tools, leaving much potential untapped.
Urgent need for smarter business finance strategies
Through her research and public engagement, Nwanya is drawing national attention to the urgent need for smarter business finance strategies. Her work has highlighted that SME owners who maintain organized books are five times more likely to secure funding, critical in a country where only one in five small business loan applications are approved.
Now a graduate of the University of Texas at Dallas, Nwanya continues to use her platform to educate and empower. Her earlier research, “Impact of Government Policies on SMEs in Nigeria,” has been referenced by policymakers and used in entrepreneurship workshops across the country.
As a member of the Institute of Chartered Economists of Nigeria and a recipient of several financial leadership awards, she brings not just expertise, but lived commitment to the cause.
“Increasing funding is not enough,” she concludes. “
We must build the financial intelligence to manage what we have. That’s how Nigerian businesses will thrive, not just survive.”
