Small and Medium scale Businesses (SMBs) have in the past added to the growth and development of many economies in the world. In time past, the information technology (IT) needs of these SMBs brought about an increase in requirements for enterprise IT solutions that are more efficient and have high availability and scalability over time. Cloud Computing offers such solutions that can be of immense benefit to SMBs. However, reports show that Cloud Computing has not been fully adopted in developing countries, Nigeria inclusive. Therefore, the aim of this research is to investigate the level of awareness and adoption of Cloud Computing in Nigeria and explicate why it is so. The mixed method approach was adopted i.e., both qualitative method (Interview) and quantitative method (Questionnaire) was used to collect data for analysis. The result of the research indicates that SMBs are adopting Cloud Computing services but there is still a need for massive awareness to be created by service providers and other recognized Information Technology bodies to enable SMBs to better utilize the benefits that Cloud Computing offers. The responses of the participants were analyzed using the Statistical Package for Social Sciences (SPSS). Based on the research findings, the main concern of users in the cloud environment is data security and privacy and this also serve as a hindrance for the SMBs who have not adopted the technology yet. These concerns could be lessened by ensuring that effective security policies are put in place by both parties i.e. the cloud service provider and the SMB. This research allows for knowledge-based decision to be made about the security risks and benefits of using Cloud Computing.