Cybersecurity awareness remain the most critical for defending small and medium enterprises (SMEs) against the growing threats of cyber-attacks in current digital era. In spite of their important contribution to national economy, SMEs in Nigeria, continue to be the centre of cyber-attacks due to inadequate awareness, inadequate resources, and poor knowledge of cybersecurity measures required. This study examines the level of SMEs information security awareness in Nigeria, exploring the factors influencing their cybersecurity knowledge and practices, as well as evaluates the effect of these awareness on their daily operational resilience. This paper adopted a mixed-methods research techniques, data were collected from various SMEs sectors using structured questionnaires and interviews. The findings reported low cybersecurity awareness, financial constraints, lack of training, and perceived irrelevance of cybersecurity as major barriers as challenges. Therefore, study recommends critical need for specified interventions such as affordable training programs, government-led initiatives, and enhanced community awareness campaigns. These recommendations intend to empower SMEs to build robust cybersecurity culture to safeguard their daily operations and contribute to sustainable economic growth.