Nigeria’s small and medium enterprises (SMEs), which account for a huge share of the nation’s economy, may be missing out on the benefits of artificial intelligence (AI) despite its growing global impact, a new study has revealed.
The research, carried out by the Enterprise Development Centre (EDC) of Pan-Atlantic University in collaboration with eTranzact International Plc, shows that while entrepreneurs are excited about AI’s potential, many lack the tools, skills, and infrastructure needed to put it into practice.
According to the study, SMEs are already experimenting with easy-to-use applications such as Google Maps, ChatGPT, and Google Assistant. However, sectors like agriculture and fashion still lag behind due to barriers such as high costs, limited local expertise, poor infrastructure, and weak regulatory support.
eTranzact CEO, Niyi Toluwalope, described the report as more than an academic exercise, calling it “a call to action.” He stressed that with over 39 million SMEs driving jobs and innovation in Nigeria, AI adoption could redefine their growth trajectory. “This insight offers a compass for policymakers, innovators, and business leaders to design inclusive digital tools tailored to Nigeria’s unique realities,” he said.
EDC’s Director of Programmes, Dr. Olawale Anifowose, added that SMEs are the backbone of livelihoods and innovation, but their survival now depends on adapting to emerging technologies. “AI is no longer optional—it is essential,” he emphasized.
The study, which drew responses from more than 5,200 SMEs across Nigeria, combined surveys with focus group discussions to capture both data and lived experiences. Its recommendations include creating affordable, locally relevant AI solutions that reflect Nigeria’s cultural and linguistic diversity.
Experts believe that unless Nigeria closes this readiness gap, local businesses could be left behind in the global AI race, weakening their ability to compete in the digital economy.
