The update turns the POS terminals from basic payment machines into complete business management tools for small and medium-sized enterprises (SMEs).

With this new feature, merchants can now handle every part of a sale, from selecting products to confirming payment, without switching between apps or devices. 

The update helps small business owners save time, simplify daily operations, and serve customers faster.

“Our goal has always been to help small businesses operate more efficiently,” said Nosa Oyegun, SVP, Business Banking at Kuda. 

“With Shop & Orders, we are transforming the POS into a connected sales management tool that allows merchants to handle payments, track inventory, and manage orders in one place. It’s a practical way to help business owners focus less on administration and more on serving customers.”

The improvement is part of Kuda Business’s plan to build an all-in-one commerce platform for Nigerian entrepreneurs. In embedding business management directly into POS devices, Kuda aims to remove the need for separate systems that usually slow down operations.

According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), SMEs make up 96% of all businesses and 84% of total employment in Nigeria. However, many still depend on manual record-keeping and sales tracking. 

Kuda’s Shop & Orders feature helps bridge this gap by digitising sales processes and making daily operations more efficient.

“Technology should make business easier, not harder,” Oyegun added. “By putting key management tools on the POS terminal itself, we’re giving entrepreneurs one reliable place to run their shops. This is how we see the future of business banking in Africa — integrated, intuitive, and built around how merchants actually work.”

The Shop & Orders update is built for supermarkets, restaurants, and convenience stores, sectors that need quick and simple ways to manage sales. 

SMEs are currently looking for connected digital tools, and Kuda’s new solution provides just what they need, a smoother, all-in-one experience.

While other POS providers focus mainly on payments, Kuda POS terminals now let merchants sell, get paid, and manage sales in one place. The Shop & Orders update is available to all users of Kuda Business POS terminals across Nigeria.

Speaking on the report during the launch, the Managing Director/CEO of eTranzact International Plc, Mr. Niyi Toluwalope, said as a leading fintech company, eTranzact views Artificial Intelligence not as a distant prospect but as an immediate opportunity for Nigerian businesses.

“This research bridges the knowledge gap by helping SMEs understand their current AI adoption status and what they need to compete both locally and globally,” he stated. The study also reinforces eTranzact’s expanding role as an enabler of digital growth and innovation beyond just payments, he noted. 

Explaining further, eTranzact CEO said the report offers SMEs a fact-based assessment of their AI readiness, guiding informed investment and capacity-building decisions. 

For Nigeria, he said, the findings serve as a strategic blueprint to enhance competitiveness, job creation, and innovation-driven economic growth.

Mr. Toluwalope highlighted that policymakers, financiers, and educators will be better equipped with data in the report to design support programs tailored to SME needs.

The comprehensive study, conducted over several months across key regions including Enugu, Kano, Lagos, Abuja, and Port Harcourt, highlights the current state of Artificial Intelligence adoption readiness among Nigeria’s over 39 million Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs). 

While there is evident enthusiasm for AI among SME entrepreneurs, the study also identifies critical gaps in awareness, access, and tailored solutions necessary to harness AI’s full potential.

The managing director emphasized that the report offers more than just data, it provides a strategic roadmap to foster an inclusive and intelligent digital economy in Nigeria. 

He said, “Through direct engagement with entrepreneurs across diverse geo zones, we have gained invaluable insights into their hopes and challenges. 

“At eTranzact, innovation is core to our values, and we are committed to collaborating with policymakers, innovators, and SME leaders to develop practical AI solutions that address real business needs.”

The organizations also noted that both electronic copies and hard copies are available.

Director of Programs & Partnerships at the Enterprise Development Centre (EDC), Pan-Atlantic University, Dr. Olawale Anifowose,stated, “The study adopted a mixed-method research approach, involving the use of both quantitative and qualitative data collection and analysis methods.

“The quantitative approach was implemented through a sample survey of SMEs with 5,290 responses across the 36 states of the federation, including the Federal Capital Territory. 

“The qualitative aspect was implemented through focus group discussions/summits with 212 participants across five states in the country, aimed to collect rich, in-depth information about issues in the study.”

The funds, according to the agency, have helped create more than 100,000 jobs across different sectors, part of its strategy to revive the country’s economy through grassroots enterprise.

In an exclusive conversation with NAN, the Director-General of SMEDAN, Charles Odii, laid bare the scale of the agency’s operations. SMEDAN has gone beyond access to money, combining finance, equipment, and regulatory support to expand the capacity of Nigeria’s SME sector.

“We have mobilised over ₦11 billion to make financing more affordable for small businesses and helped create more than 100,000 new jobs across the country,” Odii said.

This achievement, he noted, is tied to the Tinubu administration’s Renewed Hope Agenda. But while the political umbrella gives the initiative a national face, the on-ground execution has been anything but cosmetic. 

SMEDAN has been working with the National Assembly and foreign partners such as the United Nations Development Programme (UNDP), Google, and GIZ to offer practical support, particularly in the areas of digitisation and technical capacity building.

In parallel, SMEDAN has reactivated previously dormant Industrial Development Centres (IDCs), including facilities in Abuja, Osun, and Katsina. 

These hubs are now functional again, providing small businesses with reliable power, access to modern machinery, and hands-on operational support. It’s a big change from the past when small businesses were expected to grow without infrastructure.

Odii explained, “As part of efforts to revitalise local production, SMEDAN has also restored operations at several Industrial Development Centres, including those in Abuja, Osun, and Katsina States, where small businesses now benefit from access to modern machinery, steady power supply, and enterprise support.”

He stressed that SMEDAN’s collaboration with regulatory agencies, Corporate Affairs Commission (CAC), NAFDAC, Standards Organisation of Nigeria (SON), and the Federal Inland Revenue Service (FIRS), is helping businesses formalise without the traditional bottlenecks.

“Formalisation remains a key focus. SMEDAN has partnered with key regulatory agencies to ease the business environment,” he said.

That includes support for business registration, tax compliance, and access to standards and quality certification, barriers that previously limited many small business owners to informal trading.

Odii also pointed to youth-focused initiatives. SMEDAN is currently working with the National Youth Service Corps (NYSC) to convert bright ideas into viable businesses. The approach was to identify talent early, offer tools, and back them with business education and resources.

“This is what the Renewed Hope Agenda looks like in action; real support, real results, and a growing ecosystem where Nigerian businesses can thrive,” he stated.

An example is the SMEDAN Garment and Textile Hub in Abuja’s Idu Industrial Development Centre. Powered by solar and supported by the UNDP, the centre gives fashion entrepreneurs access to affordable machinery and consistent electricity, helping them scale up their operations.

“The solar-powered hub, made possible through a partnership with the UNDP, enables fashion entrepreneurs to access affordable industrial machines and stable power supply, thereby increasing productivity and job creation,” Odii explained.

Beyond hubs and partnerships, SMEDAN is pushing the “GROW Nigerian” strategy, an acronym for Guidance, Resources, Opportunities, and Workforce support. It’s designed to boost job creation and also deepen resilience within communities by anchoring local economies around empowered SMEs.

“The result is more jobs, stronger businesses, and greater value unlocked within communities nationwide.”

Not letting inflation, high costs, and policy shocks limit its goals, SMEDAN is building the foundation of a more stable and inclusive economy.

This disparity reveals a huge gap in the adoption of digital technologies, one that could open up the prospects of thousands of small and medium enterprises across the country.

SMEs are the backbone of Nigeria’s economy, contributing about 48% to the country’s GDP and accounting for over 80% of employment in the non-oil sectors. Despite their economic importance, many of these enterprises face challenges that limit their ability to scale and compete. 

Globally, the business environment is changing and this is driven by digital scale-up, and SMEs in Nigeria need to leverage modern tools to remain competitive, improve efficiency, and reduce operational expenses.

However, the journey to digital growth comes with challenges. Nigerian SMEs are often bogged down by high costs, limited scalability, and constrained access to modern technology. Most rely on traditional infrastructure that is expensive to maintain, prone to downtime, and inefficient in supporting business growth.

Cloud computing, with its flexibility and cost-effectiveness, brings a game-changing opportunity for Nigerian SMEs. In adopting cloud solutions, businesses can reduce overheads, improve operational efficiency, and scale seamlessly without investing in expensive hardware. More importantly, the cloud offers SMEs the agility needed to compete in the digital marketplace, making it a key tool for sustainable growth.

Understanding Cloud Computing in the SME Context

What is Cloud Computing?
Cloud computing is the delivery of computing services—such as storage, processing power, networking, and software—over the internet (“the cloud”), rather than relying on local servers or personal devices. 

For SMEs, this means access to technology resources that were once available only to large enterprises, enhancing innovation and reducing the technology gap. 

Instead of purchasing and maintaining physical hardware, SMEs can now access these resources as needed, paying only for what they use.

Types of Cloud Services:
Cloud computing brings several service models targeting different business needs:

• Infrastructure as a Service (IaaS): Provides virtualized computing resources over the internet. SMEs can rent servers, storage, and networks without having to invest in physical infrastructure. For example, Microsoft Azure allows businesses to deploy and manage applications in a flexible, scalable environment.
• Software as a Service (SaaS): Delivers software applications over the internet on a subscription basis. SMEs can access essential tools like Google Workspace, which provides productivity software (e.g., Gmail, Docs, and Drive), without needing to install or maintain software on individual devices.
• Platform as a Service (PaaS): Offers a platform allowing developers to build, test, and deploy applications. SMEs looking to develop custom solutions can use services like Amazon Web Services (AWS) to simplify their development process without managing underlying infrastructure.

Unique Needs of Nigerian SMEs:
The challenges associated with Nigeria’s business environment make cloud computing an even more attractive solution for SMEs. Power supply is often unstable, making on-site data centres expensive and unreliable. Internet data costs can also be prohibitive, and IT infrastructure is often insufficient to support solid growth. 

Cloud computing, however, reduces the dependency on local power and hardware, providing SMEs with the opportunity to access and manage their operations from anywhere, with minimal physical infrastructure.

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Cost Benefits: Reducing Overheads and Improving Efficiency

Eliminating Hardware Costs:
One of the greatest financial burdens on Nigerian SMEs is the cost of hardware—servers, storage, and network equipment. Cloud computing eliminates the need for such investments. 

Instead of spending large sums upfront on physical hardware, SMEs can subscribe to cloud services on a pay-as-you-go basis. This model means businesses only pay for the resources they use, allowing them to manage their cash flow more effectively.

Lowering Maintenance Costs:
Beyond the initial purchase, maintaining IT infrastructure involves ongoing costs—such as hardware upgrades, security management, and system downtime. Migrating to the cloud will enable SMEs to transfer these responsibilities to cloud service providers, who ensure that the hardware and software are up-to-date, secure, and running efficiently. This frees up internal resources and allows businesses to focus on core operations.

Workforce Reduction vs. Workforce Efficiency:
Cloud computing reduces the need for in-house IT teams dedicated to managing servers, networks, and security. This doesn’t mean reducing staff, but rather shifting the focus to more strategic initiatives. For instance, IT personnel can now spend time on innovation, optimizing business processes, and improving customer experiences instead of just maintaining infrastructure.

A great example is Farmcrowdy, a Nigerian agri-tech SME that has leveraged cloud computing to scale its operations and streamline resource management. By moving to the cloud, Farmcrowdy eliminated the need for physical servers and reduced maintenance costs significantly. This enabled them to focus on scaling their agricultural operations across the country and improving data security, while reducing their infrastructure-related expenses by 30%.

Scalability and Flexibility: A Key Driver of Growth

Dynamic Resource Allocation:
One of the key benefits of cloud computing is the ability to scale resources dynamically. SMEs experience fluctuating demand based on market conditions. With cloud solutions, they can increase or decrease their use of computing resources based on current needs. This means an SME can handle seasonal peaks in demand without over-investing in infrastructure that will sit idle during off-peak periods.

Geographic Flexibility:
Cloud computing also enables businesses to operate beyond their immediate geographic region. In using virtual platforms hosted on the cloud, Nigerian SMEs can market and deliver their services to customers outside their locality, even globally, without the need for physical offices or infrastructure.

Collaboration & Remote Work:
The rise of the gig economy and remote work in Nigeria makes cloud computing a perfect fit for SMEs. Cloud-based platforms allow employees, partners, and customers to collaborate in real-time from any location. Tools like Microsoft Teams, Slack, and Trello enable seamless communication and project management, reducing the need for in-person meetings and improving productivity across distributed teams.

Future-Proofing:
Lastly, adopting cloud technology positions SMEs for future growth and innovation. As cloud platforms evolve, they integrate cutting-edge technologies like artificial intelligence (AI), the Internet of Things (IoT), and big data analytics, which SMEs can tap into without needing to invest in new infrastructure. This ensures that SMEs can remain competitive and ready to adopt emerging technologies as they become available.

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Harnessing Cloud Technology for Nigerian SMEs: Opportunities and Challenges

Early cloud adoption can significantly help Nigerian SMEs innovate and improve their operational efficiency. It is estimated that digitizing operations could add $150 billion to Nigeria’s GDP by 2025, representing a 7% increase in economic output. 

Despite this potential, as of 2021, only 14% of Nigerian SMEs had adopted cloud computing solutions, indicating a substantial opportunity for growth. According to the Global Digital Report, approximately 55% of Nigerians are now online, reflecting the increasing accessibility of digital tools and services that SMEs can leverage for transformation.

Moreover, the African Development Bank (AfDB) projects that digital technologies, including cloud computing, could help lift 30 million Nigerians out of poverty by 2030 by providing new economic opportunities and improving productivity. Cloud adoption can boost productivity in SMEs by up to 30%, according to a PwC study, which allows businesses to optimize operations and significantly reduce operational costs.

However, despite these promising benefits, many Nigerian SMEs express concerns regarding cloud adoption, particularly surrounding data security, the cost of implementation, and the fear of disruption to existing business processes. 

A study by the Nigerian Economic Summit Group found that 40% of SME owners worry about the security of their data in the cloud, while 35% cite high initial costs as a significant barrier to adoption. Addressing these fears requires comprehensive awareness campaigns to educate SMEs on the security measures provided by cloud service providers, as well as offering financial incentives or subsidies to mitigate initial costs.

Navigating High Internet Costs

Another major hurdle for Nigerian SMEs is the high cost of internet access. While cloud computing offers numerous advantages, the ability to effectively utilize these technologies is contingent upon reliable and affordable internet connectivity. Internet costs in Nigeria can be prohibitively high, with data prices among the most expensive in Africa. 

To navigate this challenge, Nigerian business owners can explore partnerships with local Internet Service Providers (ISPs) that offer tailored packages for SMEs. Furthermore, participating in government initiatives aimed at expanding broadband infrastructure, such as the National Broadband Plan, can help improve access to affordable internet services.

Digital Literacy and Skill Gaps

Digital literacy and the existing skill gap present additional challenges for SMEs aiming to adopt cloud technologies. Many SME employees may lack the necessary skills to utilize cloud solutions effectively, hindering overall productivity and innovation. 

According to a report by Statista, only 36% of Nigerian adults possess basic digital skills, a statistic that reflects a significant training need. To address this gap, business owners can invest in training programs that focus on cloud technologies and digital skills development. Collaborating with educational institutions and tech organizations can also facilitate knowledge transfer and equip employees with the skills required to thrive in a digital economy.

The Future of Nigerian SMEs in the Cloud

Looking ahead, the future of Nigerian SMEs in the cloud is promising but requires strategic planning and commitment to overcoming the identified challenges. As cloud adoption continues to grow, businesses that embrace these technologies will likely gain a competitive advantage in both local and global markets. 

The rise of e-commerce in Nigeria, projected to reach $29 billion by 2025, underscores the need for SMEs to leverage cloud technologies for scalability and efficiency. With the fintech sector booming, accounting for 20% of Nigeria’s GDP, SMEs can harness cloud solutions to enhance their financial management and customer engagement.

In addition, as global trends shift towards remote work and digital collaboration, cloud technologies will enable Nigerian SMEs to operate efficiently in this new landscape. Embracing cloud solutions can lead to improved customer experiences, faster time-to-market for products and services, and the ability to scale operations seamlessly. 

The National Digital Economy Policy and Strategy, which aims to foster innovation and support SMEs in adopting digital solutions, further emphasizes the government’s commitment to creating a conducive environment for digital transformation.

As Nigerian SMEs navigate the complexities of digital transformation, their resilience and adaptability will be essential in driving economic development and contributing to the country’s overall prosperity. 

By addressing concerns around data security, internet accessibility, and skill development, Nigerian SMEs can unlock the full potential of cloud computing, positioning themselves for sustainable growth in an increasingly digital world.