Expert Highlights Challenges of AI in Nigerian SMEs, Harps on Implementation
Emma Okonji
Conversations around the implementation of Artificial Intelligence (AI) tools in Nigerian businesses, especially with Small and Medium Enterprises (SMEs), have always focused on high-level innovation.
But for many Nigerian SMEs, the priority is managing costs, and finding sustainable ways to grow in a challenging economic environment.
Speaking on the matter in a chat with THISDAY, the Country Head, Zoho Nigeria, Mr. Kehinde Ogundare, said the difference in perspective explains why the global AI conversation, often shaped by assumptions about stable infrastructure, deep capital, and abundant technical talent, frequently fails to address the realities facing Nigerian SMEs.
Ogundare stressed that for AI to truly contribute to Nigeria’s development, it must be adapted to the daily realities of the local business environment.
He outlined three strategic shifts that are essential for meaningful adoption to include: Moving beyond capital expenses and transitioning to affordable, subscription-based models that allow SMEs to scale without heavy upfront investment.
“Secondly is to prioritise mobile-first infrastructure by developing AI tools that account for local infrastructure, ensuring they function effectively on low-bandwidth and mobile-friendly interfaces. Thirdly is democratising development by using low-code/no-code platforms to bridge the technical talent gap, empowering existing staff to build and manage operational solutions.
“This matters because Nigerian SMEs are not a peripheral concern. In 2024 alone, MSMEs contributed 46.32 per cent to Nigeria’s GDP, accounting for 96.9 per cent of businesses and 87.9 per cent of employment. These businesses are the backbone of the Nigerian economy, and if AI is going to mean anything for Nigeria’s development, it has to work for them in the daily conditions they actually operate in,” Ogundare said.
Emphasising on the use of subscription models in making AI affordable for small businesses, Ogundare said many SMEs were already spending money across multiple disconnected tools—one for invoicing, another for customer records, another for stock tracking—none of which talk to each other.
He therefore stressed the need for an integrated platform that would handle several of these functions together, with AI built in, to reduce costs.
“With margins already under pressure, any technology a business adopts needs to, visibly, show increase in productivity or bottom line. Subscription-based, integrated platforms, priced transparently and honestly, are the model that best fits this reality,” Ogundare further said.
On the issue of infrastructure challenges, Ogundare said no conversation about technology in Nigeria would be complete without confronting the infrastructure problem, adding that AI is no exception. “Nigeria continues to face major infrastructure barriers, including limited broadband access, unreliable power supply, and high data costs, all of which constrain deeper AI adoption. These are structural features of the operating environment that any sensible technology strategy must account for today,” he said.
According to him “In practical terms, AI tools built for Nigeria cannot assume a stable broadband connection or a computer that is always powered on. The tools that will actually get used are the ones that work on a smartphone, consume minimal data, and can function offline when connectivity drops, syncing back up when it returns.”
As the policy groundwork is being laid, the commercial ecosystem is beginning to respond. What remains is a clear-eyed acceptance that AI tools built for this market need to look different from those built for markets with different realities, Ogundare added.
