AI feels like something made for Silicon Valley and not for a shop in Surulere, Lagos. And this is already shaping how the smallest Nigerian businesses survive and grow.
Micro, Small, and Medium-sized Enterprises (MSMEs) don’t need to spend millions to benefit from AI. Nigeria is home to 40 million MSMEs, contributing 90% of employment. MSMEs also account for 96.9% of businesses, 87.9% of employment, and contribute 46.3% of GDP. That means nearly every job or service around you has MSMEs at its core.
Despite their importance, most MSMEs still struggle with high inflation, unstable electricity, and rising costs. A July 2024 PwC survey of 567 MSMEs found that 67% reported declining customer demand due to reduced purchasing power.
In this kind of climate, the pressure to cut costs while staying productive is higher than ever. This is exactly where AI can come in.
Chances are, you’ve already used AI without realizing it. Voice assistants like Siri and Alexa run on AI, as do the chatbots that pop up when you’re browsing a website, trying to find your way around.
Many business owners still think AI is for the future. Others fear it will replace jobs, but the reality is, AI at the MSME level is not about robots taking over your bakery or replacing your shop assistant. It’s about helping you work smarter, cut waste, and serve customers better.
Say you run a small fashion brand. Customers keep messaging you on WhatsApp to ask the same questions: “How much is this dress?”, “Do you deliver to Abuja?”, “What’s your size guide?”
Instead of answering every single one manually, you can set up a simple WhatsApp chatbot using platforms like BotMe or Wati. These tools can answer FAQs 24/7, take orders, and even follow up with customers politely.
Or perhaps you’re in the food services industry, struggling to keep track of expenses. Instead of jotting everything down in a notebook, you could try AI-driven bookkeeping tools like Tyms AI or Vic.AI. These apps can automatically record sales, generate invoices, and remind you of pending payments.
And Nigeria is more digitally connected than ever before. The Nigerian Communications Commission (NCC) reports that as of June 2025, there are 140.6 million active internet subscribers and 48.7% broadband penetration. That’s almost half the country online.
In fact, total data consumption has shot up to 1.04 Terabytes per month across nearly 171.7 million Nigerians. So if you think your customers aren’t online, think again. They’re browsing Instagram, searching Google, and scrolling TikTok. With AI, your business can meet them right there.
Let’s also talk about marketing. Instead of paying a marketing agency hundreds of thousands of naira, you can use ChatGPT, Claude.AI, or Google Gemini to draft social media captions, email campaigns, or product descriptions.
If you need visuals, tools like Canva AI and Freepik can generate designs in minutes. Use Descript for audio and Google Veo3 for video. Suddenly, the marketing team you thought you couldn’t afford is right at your fingertips.
These are not distant or futuristic dreams. They are practical shifts already happening around you, available at a fraction of the cost once imagined.
Of course, barriers exist. Many MSMEs fear that AI is too expensive, while others struggle with poor digital literacy or unreliable internet. But think about how people adapted to mobile banking. At first, USSD codes seemed confusing. But today, even market women dial *737# – a USSD shortcode provided by Guaranty Trust Bank (GTBank) for simple banking services on any mobile phone, including transfers, airtime purchases, bill payments, and balance inquiries – without blinking. The same can happen with AI: once we see the value, adoption will spread naturally.
Mindset change is key. If your MSME continues to run its business the old way, you’ll keep losing customers to those who can serve faster, cheaper, and better.
Policymakers also need to wake up. McKinsey estimates that Generative AI alone could unlock up to $100 billion in annual economic value across Africa. Supporting low-cost AI adoption through tax breaks, training programs, and digital infrastructure is not just a nice idea, but a national urgency.
So, where to begin? Start small. Try a WhatsApp chatbot to onboard new users or answer FAQs. Use ChatGPT to write marketing content. Replace manual receipts with AI invoicing tools. Even if you just start with one tool, you’ll quickly see the time and money saved.
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*Mo Shehu, PhD, is the CEO of Column – a UK-based media and research firm. With over a decade of experience across three continents, Dr. Shehu helps leaders and brands grow through clear, credible insights. He lives in the UK.
