The Oil Mills Small Scale Industries in Nigeria are among the growing small-scale industries supporting the utilization of regional raw materials such as groundnut and absorbing thousands of individuals as employees. This study examines the challenges facing these industries in Gwammaja Masaka and Sharada Janbulo of Kano. An inventory of the industries returned one hundred and three, out of which fifty-one employers were sampled and administered questionnaires. Results show that ownership structure, unfair competition, family interference and marketing problems were severe challenges. Access to finance, environmental factors and trust were moderate challenges, while cost of power, infrastructure, access to modern technology and lack of constant power were mild challenges.
