EDC and eTranzact Launch Report to Boost AI Adoption Among Nigerian SMEs
In a strategic effort to accelerate the integration of Artificial Intelligence (AI) within Nigeria’s thriving small and medium enterprise (SME) sector, the Enterprise Development Centre (EDC) at Pan-Atlantic University has partnered with eTranzact International to release a groundbreaking report titled “Artificial Intelligence Readiness of Nigeria SMEs.” The report was unveiled yesterday at the EDC headquarters in Ajah, Lagos.
The study underscores AI’s transformative potential—highlighting how these cutting-edge tools are revolutionizing industries, business models, operational processes, and customer expectations across Nigeria.
During the launch, Niyi Toluwalope, Managing Director and CEO of eTranzact International Plc, emphasized the importance of SMEs in Nigeria’s economy. “As a fintech committed to inclusive growth, we recognize the critical role SMEs play in driving development, employment, and innovation,” he said.
He further explained that Nigeria’s over 39 million SMEs and MSMEs significantly contribute to economic resilience, prompting eTranzact’s partnership with the EDC to explore their AI readiness. “This collaborative research involved comprehensive surveys and focus group discussions with SME stakeholders, shedding light on entrepreneurs’ aspirations and the realities they face amid a rapidly digitalizing economy,” Toluwalope added.
The findings reveal a strong enthusiasm among SMEs for AI-powered solutions; however, awareness, access, and relevance remain significant hurdles. “The insights from this report serve as a vital guide for policymakers, financial institutions, innovators, and SME leaders to craft inclusive digital tools tailored for Nigeria’s predominantly informal sector,” Toluwalope noted.
He described the report as “more than just research—it’s a call to action,” emphasizing the need for collaborative efforts to develop practical AI solutions that address real business challenges and foster continuous technological investment to empower SMEs.
Dr. Olawale Anifowose, Director of Programs and Partnerships at EDC, highlighted the current landscape of AI adoption. “While awareness of AI is growing, particularly in ICT and creative sectors, overall adoption remains low—especially in agriculture and fashion,” he pointed out.
Barriers such as high implementation costs, inadequate infrastructure, limited technical expertise, and concerns over data privacy and regulatory frameworks hinder widespread AI adoption. Despite these challenges, SMEs are increasingly interested in accessible AI tools like Google Maps, ChatGPT, and Google Assistant, but require more support to overcome these barriers.
“At EDC and Pan-Atlantic University, we champion SME growth—they are the backbone of livelihoods, innovation, and job creation,” Anifowose affirmed. “Embracing emerging technologies like AI is no longer optional; it’s essential for their resilience and growth.”
The study employed a mixed-method approach, combining a survey of 5,290 SMEs across Nigeria’s 36 states and FCT with focus group discussions involving 212 participants in five states.
Dr. Stanley Ibeku, Lead of Monitoring, Evaluation, Research & Learning at EDC, emphasized that the report recommends government policies prioritizing affordable, locally relevant AI solutions, including culturally sensitive and linguistically accessible tools. It also advocates for supportive policies such as tax incentives, simplified regulations, and data privacy safeguards.
The report urges the private sector to develop affordable, user-friendly AI solutions tailored for SMEs, alongside investments in capacity building and skills development through partnerships and educational programs.