L-R: Lead, Monitoring, Evaluation, Research & Learning, Enterprise Development Centre (EDC), Dr. Stanley Ibeku; Deputy General Manager, Partnerships & Financial Services, eTranzact International Plc, Abimbola Reis; Director of Programs & Partnerships at EDC, Dr. Olawale Anifowose; Managing Director/Chief Executive Officer, eTranzact International Plc, Niyi Toluwalope; and Executive Director of Technology, eTranzact International Plc, Olayiwole Okunola during the unveiling of Artificial Intelligence Readiness of Nigerian SMEs report at EDC head office in Ajah Lagos recently. Image credit: eTranzact
In a move to encourage the Nigerian Small and Medium Enterprises (SMEs) to embrace Artificial Intelligence tools to grow their businesses, Enterprise Development Centre, Pan-Atlantic University has partnered with eTranzact International to unveil a report titled ‘Artificial Intelligence Readiness of Nigeria SMEs’.
The report which was launched yesterday at the EDC head office in Ajah Lagos highlighted transformative power of AI and how the tools are reshaping industries, business models, operational framework and customer expectations.
Speaking at the unveiling the managing director/chief executive officer of eTranzact International Plc, Niyi Toluwalope “As a superfintech enabling inclusive growth in Nigeria, we recognise the vital role small and medium enterprises (SMES) play in driving economic development, employment, and innovation.”
He stated that “With over 39 million SMEs and MSMEs contributing significantly to Nigeria’s economy, our decision to partner with the Enterprise Development Centre, Pan – Atlantic University on the AI Readiness of Nigeria SMEs Study reflects our commitment to their growth and resilience.
“This collaborative research effort anchored on thoughtful surevey collection and focused group discussions with SME stakeholders; shed light on both the aspiration and realities of entrepreneurs navigating a fast changing digital economy, he added.
On the finding, Mr. Toluwalope said “What emerged from the study is clear, while there is strong enthusiasm for AI-powered solutions, there is still a gap in awareness, access and contextual relevance, adding that ‘The insight from this report offer a timely compass for policymakers, financial service providers, innovators, and SME leaders seeking to design the next ear of inclusive digital tools for Nigeria’s mostly informal SME sector.”
At eTranzact, he said, “This is a not a research, it is a call to action. It affirms our resolve to co-create with the ecosystem, deploy intelligent solutions tailored for real-world business challenges, and continue investing in technologies and solutions that empower SMEs and businesses every day.”
Highlighting the state of AI adoption among Nigerian SMEs, the director of programs and partnerships at EDC, Dr. Olawale Anifowose said, “The Artificial Intelligence Readiness Study reveals both challenges and opportunities, while awareness of AI technologies is growing, especially in information and communication technology (ICT) and creative sectors, overall adoption remain low, particularly in agriculture and fashion.”
“SMEs are drawn to affordable and user-friendly AI tools like Google, Maps, ChatGPT, and google assistant, but face significant barriers including high implement costs, inadequate infrastructure and lack of technical expertise.
“Lack of local adaptation and acceptance, data privacy concerns and the absence of a supportive regulatory framework further hinder AI adoption,” he added.
He said, “At the EDC, Pan-Atlantic University, we’ve always championed the growth and resilience of SMEs. They are not just business- they are builders of livelihood, innovators, and job creators. And we believe that embracing emerging technologies like AI is no longer optional; it is essential.”
According to Dr. Anifowose, “This report is a timely response to that belief. It explores where Nigerian SMEs currently stand on the AI journey- their readiness, their hurdles, and the incredible opportunities ahead. From improving customer experience to making smarter, data-driven decision, the road to AI adoption is filled with promise,” he stated.
The study adopted a mixed-method research approach, involving the use of both quantitative and qualitative data collection and analysis methods. The quantitative approach was implemented through a sample survey of SMEs with 5,290 responses across 36 states of the federation, including the Federal Capital Territory (FCT).
The Lead, Monitoring, Evaluation, Research & Learning, Enterprise Development Centre (EDC), Dr. Stanley Ibeku further stated that the qualitative aspect was implemented through focus group discussions/summits with 212 participants across 5 states in the country, aimed to collect rich, in-depth information about issues in the study.
The report recommends that “Government should prioritize and invest in locally relevant AI solutions, focusing on affordable tools for SMEs. There should be the promotion of indigenous AI tools that are culturally sensitive and linguistically accessible. There should also be the development of AI –friendly policies, including tax incentives, simplified regulations, and data privacy safeguard.”
The report urges the private sector to develop and offer affordable, user-friendly AI solutions tailored to SME needs and invest in AI skill training and capacity building through partnership and educational programmes.
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