Science & Tech
THE Country Head of Zoho Nigeria, Mr Kehinde Ogundare, said that Artificial Intelligence adoption among Nigerian SMEs is being constrained by poor infrastructure, low digital literacy and skills shortages.
Ogundare stated this on Tuesday in a statement titled ‘The Future of AI in Nigerian SMEs: Overcoming Barriers to Implementation’.
He said a study involving 144 Nigerian SMEs identified these challenges as major barriers preventing businesses from fully leveraging artificial intelligence.
According to him, in spite of growing awareness of AI, many SMEs still struggle with unreliable electricity, limited broadband access and the high cost of technology adoption.
He said while AI discussions in developed economies focused on scale, innovation and competitive advantage, Nigerian SMEs remained concerned about rising costs, infrastructure challenges and business survival.
According to him, global AI conversations often overlook the realities of Nigerian businesses operating with unstable power supply, limited broadband access and constrained financial resources.
‘’Micro, Small and Medium Enterprises (MSMEs) contributed 46.32 per cent to Nigeria’s Gross Domestic Product in 2024, accounting for 96.9 per cent of businesses and 87.9 per cent of employment.
“These businesses are the backbone of the economy and any meaningful AI strategy for Nigeria must work within their daily operating conditions,” he said.
According to him, awareness of AI is growing among business owners but practical implementation remains constrained by limited access to affordable and appropriate technologies.
Ogundare said subscription-based technology models were making AI more accessible by eliminating large upfront investments and allowing businesses to pay only for services they use.
He said integrated platforms that combined invoicing, customer management and inventory tracking could reduce costs while improving operational visibility for business owners.
“Any technology adopted by SMEs must deliver measurable productivity gains and support profitability in an environment where margins are already under pressure,” he said.
The Zoho Nigeria chief described infrastructure as one of the biggest obstacles to wider AI adoption, citing unreliable electricity supply, high data costs and connectivity limitations.
He noted that businesses were increasingly dependent on smartphones, making mobile-first AI solutions more practical for Nigeria’s business environment.
According to him, AI tools that require constant broadband access or uninterrupted electricity are unlikely to achieve widespread adoption among SMEs.
“The tools that will succeed are those that consume less data, work on mobile devices and can function offline before synchronising when connectivity returns,” he said.
Ogundare also stressed the importance of digital skills development, noting that recent studies showed 64 per cent of African workers were already using AI in their workplaces.
He said this demonstrated growing readiness for AI adoption across the continent and underscored the need for organisations to invest in workforce upskilling.
He urged technology providers, policymakers and business support organisations to prioritise affordable, low-bandwidth and user-friendly AI solutions tailored to local realities.
“Low cost, low bandwidth requirements and ease of use for non-technical users are not optional features; they are essential requirements for AI adoption in Nigeria’s SME sector,” he said.
(NAN)
W.U
June 23, 2026
Tags: Mr Kehinde Ogundare