Micro, small, and medium enterprises (MSMEs) are embracing social media platforms to expand their reach and scale their operations.
However, while technology is opening new doors for these businesses, it is also exposing deep cracks in Nigeria’s digital economy.
Many MSMEs continue to grapple with unreliable internet connectivity, a lack of digital skills, high data costs, and inadequate infrastructure. These challenges not only hinder growth but also risk widening the gap between tech-savvy entrepreneurs and those being left behind.
According to the National Information Technology Development Agency (NITDA), digitalising Nigeria’s MSMEs could increase the country’s GDP by $53 billion by boosting revenue by 26 percent and cutting costs by 22 percent.
A digital maturity assessment commissioned by GIZ and conducted across 10 states among more than 1,800 MSMEs revealed that 61 percent are already using digital tools in their operations, 27 percent are open to digitalisation but require support, while 12 percent remain hesitant.
In parallel, a PwC survey of 567 MSMEs found that more than half cited declining sales — driven by high prices and weak consumer purchasing power — as their biggest challenge.
About 35 percent pointed to a lack of finance as a major obstacle, with power outages, multiple taxes, and a shortage of skilled labour also ranking high.
Despite these hurdles, many small business owners are finding innovative ways to thrive in a challenging economy, using technology to expand their markets, streamline operations, and attract new customers.
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REAL STORIES, REAL IMPACT
For Amaka, a fashion designer who beads and sews bespoke outfits for men and women, the turning point came in 2023 when she opened a TikTok account.
“Before, I was depending on people that see my clothes,” she said. “But now, I sew for people around the world through my TikTok. If not for that social media platform, I would not even have some of the customers I have presently.”
She credits TikTok not only for bringing her clients but also for exposing her to new styles and business ideas.
“There are some styles that I didn’t know about. I didn’t know how to do them. But my TikTok has shown me so many styles and so many business ideas about my fashion designing,” she said.
Amaka said she now makes over N100,000 monthly, attributing it to increased demand driven by her online visibility.
Yetunde, who runs a food business, only started using technology in early 2025. Since adopting WhatsApp, Instagram, and TikTok to promote her meals, she said sales have exceeded her expectations.
However, the chef noted that the cost of producing high-quality content remains a challenge.
“I want to use a clean camera to create content of my meals, but it’s not affordable, including data,” Yetunde said.
Kenny, co-founder of a fashion and accessories brand, recalled how rebranding, inspired by tips she found online, landed her an international client.
“I actually changed my bio, and on the third day, someone reached out to me to patronise me,” she said.
“Imagine I was not using technology. I would not have come across the person online who taught me how to improve my profile. I would have lost money and the client.
“Up till today, she still shops from me whenever she is back in Nigeria, or she sends someone to pick up items for her and take them to her.”
Platforms like TikTok and Facebook Marketplace have been her strongest performers, but she has also faced setbacks — from high data costs to poor power supply — which once caused her to lose a major sale when a customer could not reach her.
Since adopting digital tools, Kenny said her efficiency and customer reach have improved.
Also, she said overall profits are up by about 30 percent mainly due to expanded market access, but economic challenges remain.
“The rising cost of goods and reduced consumer spending have affected my profit margins,” she said.
“Customers are more price-conscious, and suppliers often increase prices unexpectedly, which makes inventory planning harder. On the positive side, the pressure has pushed me to be more innovative and strategic in my operations.”
CROSS-BORDER CUSTOMERS
Jumoke, who sells and styles hair, said Instagram and WhatsApp have helped her reach clients abroad, while TikTok is emerging as a growth area.
But she, too, pointed to the cost of smartphones and data as barriers.
“When you want to create good content for your products, you need to invest in a very good smartphone. It’s not cheap,” Jumoke said.
FROM N15,000 TO OVER 50% PROFIT GROWTH
For Joy, who runs a jewellery business, going digital has been a turning point. After losing her phone, she struggled to maintain an online presence, but investing in a replacement allowed her to get serious about growing her business.
“Using technology has changed the way I run my business. It has helped me to reach a few other customers. It has increased my business a little bit beyond my physical customers. It has helped me to reach people online too,” she said.
Her main challenges have been the cost of devices, data, and the need for content creation skills.
“Selling trendy items means I need to stay trendy, and that requires learning how to create engaging content,” she added.
Since moving online, Joy said her profits have risen by 50–60 percent.
“I have made, like, a 50 to 60 percent profit increase compared to when I was just running the business offline,” she said.
“I started the business with N15,000 and made about N50,000 profit altogether before going online. But since I moved online, I have made far more than that.”
Precious, who sells perfumes, started her business in 2024 and adopted technology the same year — beginning with WhatsApp before expanding to TikTok.
“Technology has really transformed how I run my business. Through TikTok, I have made a lot of deliveries, learnt how to create engaging content, package orders better, and even discovered new perfume products to stock,” she said.
When she started, Adenike invested N60,000 and made about N30,000 profit or less. But after leveraging TikTok, her sales capacity grew.
“Now I buy goods worth about N200,000 and make over N60,000 profit, sometimes twice a month depending on sales,” she added.
Adenike said the major hurdles she encounters in running her business are the high cost of data to make content and post, as well as unreliable internet connectivity.
‘LOW DIGITAL SKILLS, CYBER RISKS BIGGEST TECH ADOPTION BARRIERS’
Speaking to TheCable, Peter Adeshina, special assistant to the director-general on media and communications at SMEDAN, identified the biggest technology adoption barriers for MSMEs as cost of devices, internet connectivity, low digital skills, cyber risks, and limited localised solutions.
To address these, Adeshina said SMEDAN is distributing devices under the national business skills development initiative (NBSDI), advocating for affordable broadband, and supporting innovators to develop MSME-friendly tools.
He added that the agency is running a number of initiatives to drive digital adoption for business operations and market access.
These programmes, the SMEDAN official said, include digital skills for MSMEs and Digitalfirst NG with Mind the Gap, which provide training and optimisation support, as well as the NBSDI, which equips trainees with laptops and digital tools.
“We certify Business Development Service Providers (BDSPs) to sustain training at the community level, and in partnership with GIZ, we are establishing Digital Centers across the six regions to give MSMEs hands-on support for digital adoption and basic IT,” Adeshina said.
“We are also working with Flutterwave to develop a digital marketplace that simplifies online payments, and we partner with global brands like Google and Microsoft to upskill MSMEs, including women entrepreneurs.”
CLOSING THE LITERACY GAP
On addressing the digital literacy gap, especially in rural areas, Adeshina said SMEDAN delivers practical, decentralised training through its offices in all 36 states and the FCT, as well as through local SME hubs and clusters.
He said SMEDAN is also helping MSMEs overcome affordability challenges.
“We lower cost barriers through in-kind provision under programmes such as NBSDI, targeted grant and equipment support programmes, and blended financing models that combine small grants, matched funding, and private-sector co-investment,” Adeshina said.
He added that the agency works with relevant ministries and development partners to align concessional financing and support schemes, ensuring that affordability goes hand-in-hand with training and adoption.
On policy to make technology more accessible for small businesses, Adeshina said more states need to create enabling conditions that attract private investment in internet infrastructure.
“For example, policies like waiving right-of-way charges make it easier and cheaper for operators to expand broadband access, which is essential for digital adoption by MSMEs,” he said.
Beyond infrastructure, he recommended stronger public–private partnerships with payment platforms and cloud service providers to deliver affordable digital business bundles, more support for incubators to localise solutions for low-bandwidth and vernacular markets, and expanded cybersecurity support to help MSMEs adopt digital tools with confidence.
