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Many companies are now channeling their efforts into deriving value from digital technologies. According to Tsou & Chen (2021), the significance of digital technologies has become more apparent in the twenty-first century. The use of digital technology by businesses has played a critical role in improving management, service, production characteristics, performance, and productivity. Digital technologies have a growing impact on industries, and e.g. improved customization, automatization of business processes, and create opportunities for innovation. Osmunden et al. (2018) stated that digital transformation (DT) is defined as the regular application of digitalization or digital innovation to enable major changes in how business is executed, resulting in significant changes for an enterprise or an entire industry. Therefore, businesses need a DT strategy and a results-oriented business platform to accomplish significant change that now it is attainable due to technological advancements (Schwertner, 2017). According to Shettima & Sharma (2019), DT is today a significant challenge for small and medium enterprises (SME), as several industries and companies are under the pressure to digitalize their operations. Highly innovative SMEs suffer from skill scarcity and financial issues, affecting their growth. Small and medium enterprises are according to OECD (2005) independent businesses that employ fewer than a certain number of people, which varies by country and the maximum number of employees in a company classified as an SME is 250 employees. However, other nations limit it to 200 employees. Based on defining SMEs in terms of financial assets, the European Union in January 2005 defined SMEs as medium-sized enterprises (50-249 employees) with a turnover of no more than EUR 50 million, while small enterprises (10-49) should have a turnover of no more than EUR 10 million. In addition, micro firms (less than ten employees) should have no more than EUR 2 million in turnover. According to Adamu & Ibrahim (2011), the Federal Ministry of Industries in Nigeria defines a medium-sized enterprise with operating assets of less than EUR 448,707 and fewer than 300 employees. On the other hand, a small-scale business has total assets of less than EUR 112,177 and fewer than 100 employees. In opinion of Gbandi & Amissah (2014), small and medium-sized enterprises (SMEs) are critical to the economic development of both developed and developing countries, and they take up a substantial part of a country's workforce. Developing countries such as Nigeria require long-term economic progress. Therefore, the SMEs sector is crucial because of its enormous earning potential, job creation potential, enhanced local technology, output diversification, and indigenous enterprise development. Moreover, SMEs need to enhance the policies made for ICT inclusion in their business operations (Shettima & Sharma, 2019). Despite the enormous benefits that DT brings to organizations, some organizations still face hindrances in digitally transforming their businesses effectively and create value. The DT in SMEs faces several barriers when examining it based on its dimensions. Umeh et al. (2020) mentioned that SMEs achieve mixed outputs because the value of IT creation is way more challenging than projected at the beginning by managers and entrepreneurs. In addition, as was recommended by Ofosu-Ampong (2021), there is a need to examine perceptions and responses to the use and implementation of DT in futures studies in the developing countries Therefore, this research has looked to examine the barriers that small and medium enterprises face in DT in developing countries like in Nigeria. To address this lack of knowledge the following research problem has been formulated: What barriers in digital transformation face a Nigerian small and medium company? The next sections of this paper include the research background, research methodology, results and data analysis, and conclusions.