Knowledge management is a tool which can create a strategic impact in any organisation. It has become one of the most important resources that facilitates and sustains firms’ competitive advantage. Sharing knowledge gives an organisation a long term benefit. However, the success of knowledge management relies on the role played by the organisation itself. Given the global nature of competition, Small and Medium Sized Enterprises(SMEs) in Nigeria are unable to compete, yet there is relatively very little information on knowledge management in the SME sector in Nigeria. This paper intends to discuss the various benefits associated with the adoption of knowledge management in SMEs and the potential benefits awaiting Nigerian SMEs who choose to adopt knowledge management in their operational strategy.