The transformative potential of cloud computing in driving business efficiency and innovation is well-acknowledged globally. However, its adoption among small and medium-sized enterprises (SMEs) in Nigeria, a developing economy, is still under-explored and fraught with unique challenges including infrastructural deficits, high internet costs, limited technical expertise, concerns over data security and sovereignty, and regulatory uncertainties. This study investigates the challenges and opportunities associated with the adoption by leveraging a qualitative research approach, the study utilizes in-depth interviews with a diverse group of stakeholders to collect rich, contextual data. Guided by the Technology Acceptance Model (TAM) and the Technology-Organization-Environment (TOE) frameworks, the collected data is analysed to illuminate the key technological, organizational, and environmental factors affecting cloud adoption. By offering critical insights into the realities and complexities of technology adoption, the study aims to inform strategic decision-making among SMEs, policymakers, and technology vendors. It also proposes actionable recommendations for overcoming the identified barriers and optimizing the potential of cloud technology for the growth and competitiveness of Nigerian SMEs. The outcomes of this research highlight the need for collaborative efforts in fostering an environment conducive to technological advancement and digital transformation in the SME sector in Nigeria.