Artificial intelligence is being positioned globally as the next transformative force for small business productivity. For Nigerian SMEs, the picture is considerably more complicated and an analysis published today by Kehinde Ogundare, Country Head of Zoho Nigeria, lays out why the gap between the global AI conversation and the realities of running a small business in Kano or Onitsha is wider than most technology companies are willing to acknowledge.
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The problem with how AI is being sold
Ogundare’s central argument is straightforward: the global AI narrative has been built around assumptions that do not apply to most Nigerian SMEs. Stable infrastructure, reliable internet connectivity, deep capital reserves, abundant technical talent, and the time to implement complex systems — these are the baseline conditions that most AI tools take for granted. They describe a San Francisco startup, not a Lagos trader or a Kaduna manufacturer.
In 2024, MSMEs contributed 46.32 per cent of Nigeria’s GDP, accounted for 96.9 per cent of all businesses, and employed 87.9 per cent of the workforce. These are not peripheral economic actors. But empirical research drawing on data from 144 Nigerian SMEs has found that inadequate infrastructure, low digital literacy, skills shortages, and regulatory gaps are collectively preventing small businesses from meaningfully engaging with AI tools even where interest exists.
The global AI conversation is being shaped by people who have never had to close a shop because the generator ran out of diesel. The tools being built for that conversation are not built for the businesses that actually drive Nigeria’s economy.
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What adoption actually requires
The piece identifies subscription pricing as a critical enabler. Most small business owners associate AI with expensive software, specialist consultants, and large upfront costs — an association that is not entirely wrong but describes a particular procurement model rather than AI itself. The shift toward monthly subscription models has made AI tools far more accessible in principle.
The deeper opportunity Ogundare identifies is consolidation. Nigerian SMEs are typically managing multiple disconnected tools — one for invoicing, another for customer records, another for stock — none of which share data or reduce the time burden on the business owner. An integrated platform that handles multiple functions with AI built in can cost less than the combined subscriptions while delivering far more operational visibility.
Mobile-first design is equally non-negotiable. Any tool that assumes desktop access, stable broadband, or consistent electricity will fail to reach the majority of Nigerian SMEs before it has started. AI solutions that work on a smartphone with intermittent connectivity and do not require technical expertise to operate are the only ones positioned for meaningful adoption at scale.
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What this means for the sector
Zoho Nigeria’s position in this conversation is relevant. Zoho One is an all-in-one platform that integrates over 40 business applications, accounting, CRM, project management, HR, inventory, and others, into a single subscription accessible from mobile. Its model reflects exactly the consolidation and accessibility argument Ogundare is making.
The broader implication is for any technology company targeting Nigerian SMEs. Generic global products will find limited traction. Tools designed for low bandwidth, mobile-first use, and genuine operational simplicity, tools built for the daily conditions of a Nigerian business owner, not a Silicon Valley one, are the ones that will convert the sector’s AI interest into actual adoption.
Nigeria’s 40 million small businesses are not waiting for AI to arrive. They are waiting for an AI that works for them. The companies that build for that gap will find one of the largest underserved technology markets in the world.
