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Reform Paralysis: Nigeria’s New Tax Act Triggers Spending Freeze Across SMEs Amid Implementation Fog

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Home»News»The AI Host: Hostinger Bets on Automation to Unlock Nigeria’s SME Digital Economy
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The AI Host: Hostinger Bets on Automation to Unlock Nigeria’s SME Digital Economy

Gift IfeanyiBy Gift IfeanyiDecember 11, 202502 Mins Read
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The Lithuanian web-hosting powerhouse, Hostinger, is making a strategic entry into Nigeria, positioning itself not as a traditional infrastructure provider, but as a leader in AI-driven productivity. Having consistently ranked among Europe’s fastest-growing companies, Hostinger is wagering that deep automation, rather than just raw speed or low price, will be the decisive factor in accelerating Africa’s digital expansion.

This move coincides with Nigeria’s digital economy surging faster than its wider GDP, generating approximately ₦7 trillion in the first half of 2025. Yet, this momentum contrasts sharply with the challenges faced by the country’s 41 million SMEs who struggle with technical hurdles, unreliable local hosting, and complex pricing structures when attempting to build a reliable online presence.

Removing Friction with Generative AI

Hostinger views Nigeria’s fragmented SME landscape—underserved by global cloud giants and frustrated by local incumbents—as a massive open opportunity. While the company is implementing localized essentials like Naira-denominated payments and 24/7 local support, its primary differentiator is an aggressive integration of generative AI across its entire platform.

“In markets like Nigeria, people are not just choosing between hosting companies. They are choosing between running a business offline or online. Our aim is to remove the friction entirely,” says Eiviltas Paraščiakas, Hostinger’s head of communications.

Where competitors treat AI as an optional feature, Hostinger uses it as the core offering:

  • Hostinger Website Builder: Integrates AI for essential functions like content writing, image creation, and Search Engine Optimization (SEO).

  • Hostinger Reach: An AI-powered email marketing platform.

  • Hostinger Horizons: A no-code tool capable of generating entire websites and simple web applications.

Kodee: The Centralized AI Agent

The company’s most ambitious play is Kodee, its in-house AI agent, which is now central to its commercial and operational strategy.

Kodee is designed to execute over 350 tasks typically handled by human support or external contractors, including:

  • Website migration

  • Blog post generation

  • WooCommerce product catalog management

  • Domain registration

In September 2025 alone, Kodee handled 855,000 customer interactions, resolving a massive 76% of them without human involvement (up from 50% earlier in the year). This efficiency is not just a service upgrade; it’s a financial strategy, generating savings projected to surpass €9 million annually. These operational efficiencies allow Hostinger to maintain lower pricing in emerging markets while providing a richer feature set, thus democratizing the tools needed for Nigerian SMEs to go digital.

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Gift Ifeanyi

Gift Ifeanyi is a passionate and talented young web developer with a flair for storytelling and a keen interest in business and entrepreneurship. She brings a fresh perspective and a tech-savvy approach to delivering daily news and insights on the ever-evolving world of startups, innovation, and business trends. With a commitment to excellence and a drive to inspire the next generation of entrepreneurs, Gift is dedicated to creating engaging and informative content that empowers readers to thrive in the dynamic business landscape.

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