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Nigerian small and medium-sized enterprises (SMEs) require a unique approach to artificial intelligence (AI) adoption that reflects the realities of their operating environment, according to Kehinde Ogundare, Country Head of Zoho Nigeria.
Ogundare said the global conversation around AI is often driven by assumptions of stable infrastructure, easy access to capital and abundant technical talent, factors that differ significantly from the conditions under which many Nigerian SMEs operate.
In an article titled “The Future of AI in Nigerian SMEs: Overcoming Barriers to Implementation,” he argued that while AI discussions in developed markets focus on innovation and competitive advantage, Nigerian businesses are more concerned with managing costs, staying operational and achieving sustainable growth.
According to him, SMEs remain central to Nigeria’s economy, contributing substantially to economic output, employment and business activity. Yet, challenges including inadequate infrastructure, low digital literacy, technical skills shortages and regulatory gaps continue to limit meaningful AI adoption.
Ogundare noted that one of the most effective ways to accelerate adoption is through affordable subscription-based pricing models.
He explained that many SMEs view AI as an expensive technology requiring significant upfront investment, a perception that discourages adoption.
“Businesses need access to technology without the burden of large capital expenditure. Subscription-based models allow SMEs to pay for what they use, scale as needed and avoid taking on unnecessary financial risks,” he said.
He added that integrated business platforms combining multiple operational functions can help SMEs reduce costs while improving efficiency and decision-making.
Ogundare also stressed the need for AI developers to take Nigeria’s infrastructure realities into account.
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According to him, unreliable electricity supply, limited broadband access and high data costs remain major obstacles to technology adoption across the country.
He argued that AI solutions designed for Nigerian SMEs must prioritise mobile accessibility, low data consumption and the ability to function effectively despite connectivity challenges.
“The mobile phone has become the primary business tool for many SME owners. AI solutions that work efficiently on smartphones and require minimal bandwidth stand a better chance of driving adoption,” he said.
The Zoho Nigeria Country Head further highlighted the importance of building local capacity through employee upskilling and the use of low-code and no-code development tools.
He noted that empowering non-technical workers to build and manage business applications could help organisations overcome the shortage of specialised technology talent.
According to him, democratising access to technology development will allow more businesses to leverage AI without depending heavily on scarce technical expertise.
Ogundare maintained that the future of AI in Nigeria will depend on how effectively technology providers align their solutions with local realities.
“Low cost, low bandwidth requirements and ease of use are not optional features for Nigerian businesses. They are fundamental requirements. AI will only achieve widespread adoption if it is built around the realities of the SMEs it is intended to serve,” he said.
He expressed optimism that with the right combination of affordable technology, mobile-first design and workforce development, AI can help Nigerian SMEs improve productivity, strengthen resilience and unlock new growth opportunities.
