CYBERCRIME AND SMALL BUSINESS PERFORMANCE IN KOGI STATE, NIGERIA

Small and medium sized enterprises (SMEs) in Nigeria are increasingly vulnerable to cybercrime, yet the precise manner in which this vulnerability undermines their performance remains poorly understood. This study examine the effect of cybercrime on small business performance in Kogi State, Nigeria. The study covered a period between 2022- 2025. The population of this study comprises of 22,715 registered SMEs in Kogi State, Nigeria which was directly sourced from Small and Medium Enterprises Development Agency of Nigeria (SMEDAN, 2020) report. The sample size of the study is 377 which was determined using Krejcie and Morgan (1970) sampling technique. The hypotheses of the study were tested using multiple regression analysis with the aid of Statistical Package for Social Science (SPSS) 24.0. The study found that monetary losses has positive and significant effect on small business performance in Kogi State, perceived risk index has positive and significant effect on small business performance in Kogi State while operational disruption has positive and significant effect on small business performance in Kogi State. The study concluded that while cybercrime related risks pose real challenges, SMEs in Kogi State have transformed these challenges into opportunities for learning, adaptation, and performance enhancement. The study recommended that SME owners should institutionalize strict financial management practices even in the absence of losses. This includes the regular reconciliation of electronic transactions, separation of business and personal funds, periodic financial audits, and the adoption of basic accounting software. SME owners should be encouraged to convert risk awareness into structured risk management systems. This entails continuous cyber-risk education, staff training on fraud detection, use of secure payment gateways, and the adoption of multi-factor authentication for electronic transactions. SMEs should formally adopt business continuity and operational contingency planning. This includes maintaining multiple electronic payment options, securing backup power sources such as inverters and generators, and designing manual transaction alternatives for periods of system downtime.

0 19 Dec, 2025

pg: 16

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