Practical use cases that drive revenue
Small and medium-sized enterprises (SMEs) are the backbone of Nigeria’s economy, accounting for the majority of employment and a significant share of economic activity. Yet many of these businesses struggle with limited capital, inefficient processes, and intense competition. Generative artificial intelligence (AI) is emerging as a powerful equalizer — helping Nigerian SMEs operate more efficiently, reach new customers, and increase revenue without massive upfront investment.
Unlike traditional enterprise software, generative AI tools are increasingly accessible, cloud-based, and adaptable. For SMEs across retail, logistics, agriculture, and professional services, the technology offers practical, revenue-driven use cases rather than abstract innovation.
Retail: Personalisation and sales at scale
In Nigeria’s highly competitive retail sector, customer experience often determines success. Generative AI enables small retailers to deliver personalised interactions previously reserved for large brands. AI-powered chatbots can answer customer inquiries on WhatsApp, Instagram, or websites, recommend products, and handle orders around the clock.
For example, a fashion retailer in Lagos can use AI to generate product descriptions, promotional messages, and social media content tailored to different customer segments. AI-driven insights can analyze purchasing patterns to suggest bundle offers or restocking decisions, reducing unsold inventory and increasing average order value.
Language flexibility is another advantage. AI tools can communicate in simple English or local languages, helping retailers connect more effectively with diverse customer bases. The result is higher conversion rates and stronger customer loyalty without hiring additional staff.
Logistics: Efficiency and cost reduction
Logistics is a critical but complex sector in Nigeria, shaped by traffic congestion, infrastructure gaps, and fragmented supply chains. Generative AI can help SMEs in logistics improve planning, communication, and decision-making.
AI tools can generate optimized delivery routes based on historical data and real-time inputs, reducing fuel costs and delivery times. Automated customer notifications — such as delivery updates or issue explanations — improve transparency and trust. Internally, AI can assist with invoice generation, shipment documentation, and basic customer support, freeing teams to focus on operations.
A small courier company, for instance, can use AI to analyze delivery delays, generate performance reports, and propose operational improvements. These efficiencies directly impact profitability while enhancing service quality.
Agriculture: Smarter decisions for smallholder farmers
Agriculture employs a large portion of Nigeria’s workforce, much of it through smallholder farmers and agri-SMEs. Generative AI can transform this sector by improving access to information and decision-making tools.
AI-powered advisory systems can generate localized farming guidance — covering planting schedules, fertilizer use, pest control, and weather-related risks — based on regional data. Farmers can interact with these systems through simple mobile interfaces, reducing dependence on limited extension services.
For agribusiness SMEs, generative AI can help forecast demand, generate market price summaries, and prepare buyer proposals. A produce aggregator, for example, can use AI to predict which crops will be in high demand and plan sourcing accordingly, minimizing waste and maximizing margins.
Professional services: Doing more with small teams
Professional service providers — lawyers, accountants, consultants, marketers, and designers — often face capacity constraints that limit growth. Generative AI enables these SMEs to scale output without proportionally increasing headcount.
AI tools can draft contracts, prepare financial summaries, generate reports, and conduct preliminary research. While human expertise remains essential for judgment and final decisions, AI significantly reduces time spent on repetitive tasks. This allows professionals to serve more clients, improve turnaround times, and offer more competitive pricing.
A small accounting firm, for instance, can use AI to automate bookkeeping summaries and client communication, enabling partners to focus on advisory services that command higher fees.
Lower barriers, higher revenue potential
One of generative AI’s most important benefits for Nigerian SMEs is cost reduction. Many tools operate on subscription or usage-based models, eliminating the need for large upfront investments. This makes advanced capabilities accessible even to micro-enterprises.
However, success depends on thoughtful adoption. SMEs must understand their workflows, identify revenue-impacting bottlenecks, and integrate AI as a support tool rather than a replacement for human judgment. Training and basic digital literacy are essential to realizing value.
A competitive edge for Nigerian SMEs
As Nigeria’s economy becomes increasingly digital, SMEs that adopt generative AI early will gain a significant competitive edge. By improving efficiency, enhancing customer experience, and unlocking new revenue streams, AI empowers small businesses to punch above their weight.
Generative AI is not a silver bullet, but it is a practical tool — one that, when applied thoughtfully, can help Nigerian SMEs grow sustainably, compete effectively, and play an even greater role in the country’s economic future.
Olusegun Afolabi has a first degree in biochemistry from the University of Ilorin, Nigeria, and a master’s in computer science from Hertfordshire University in the United Kingdom. He is an AWS solutions architect professional, a Microsoft certified Azure solutions architect expert, co-founder and chief innovations architect of Face Technologies UK Limited. He can be reached at … and on Linkedin: https://www.linkedin.com/in/olusegun-afolabi-307931184/
