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Nigerian SMEs face real hurdles in adopting AI, or artificial intelligence, with poor power supply, weak digital skills and high costs holding many back, according to findings highlighted in a study by software firm Zoho.
The Nigerian SMEs AI paradox
The research points to a striking gap between interest and sustained use. While a large share of organisations say they have begun experimenting with AI, the country’s overall adoption rate remains low, suggesting many businesses try the technology briefly and then quietly set it aside.
That gap between awareness and consistent application is the real story. For many small and medium enterprises, getting started is easier than building AI into everyday operations in a way that delivers lasting value.
Power and infrastructure barriers
Unreliable electricity is a major constraint. Without steady power, running digital systems consistently is difficult, and the problem is compounded by limited broadband access and the high cost of data in some areas.
These infrastructure challenges raise the practical cost of going digital, making it harder for small firms to rely on tools that demand constant connectivity and computing power.
The skills gap
A shortage of skilled professionals is another obstacle. Analysts note that many schools and technical institutions are not producing enough graduates with the expertise needed to deploy and manage AI effectively.
Even when a business can afford the technology, it often lacks staff who can use it well. That mismatch between tools and talent limits how much value firms can extract from their investments.
Cost pressures
The expense of installing and running AI systems keeps many businesses on the sidelines. For smaller firms operating on thin margins, the upfront and ongoing costs can be prohibitive, widening the divide between them and larger companies with deeper pockets.
This financial barrier reinforces existing inequalities, allowing well-resourced businesses to pull further ahead while smaller players struggle to keep pace with technological change.
What it means for Nigeria
Small and medium enterprises are central to Nigeria’s economy, so their ability to harness new technology has wider implications for growth and competitiveness. Closing the adoption gap could unlock significant productivity gains across many sectors.
Experts argue that progress will require coordinated action on power, skills and affordability, rather than focusing on the technology alone. Addressing the foundations is key to turning early interest into durable adoption.
The road ahead
Bridging the divide will take time and sustained effort from businesses, educators and policymakers. Training, better infrastructure and supportive policies could help more firms move from experimentation to real, lasting use.
Turning interest into action
Experts say closing the gap will require practical support rather than hype, including affordable tools, reliable infrastructure and training tailored to small businesses. Targeted interventions could help firms move beyond brief experiments toward sustained, productive use of new technology.
For now, the message from the research is clear: enthusiasm for AI is high, but the conditions for widespread success in Nigeria still need strengthening. Viorah TV will keep tracking how the country’s tech landscape develops.
