Title: Impact Of Artificial Intelligence In Enhancing Small And Medium Scale Enterprises In Nigeria
Authors: Wada Joseph , Elias Samuel Unekwu , Adejo Odekina Okeme, Maiwada Simon Zagana
Volume: 10
Issue: 9
Pages: 374-384
Publication Date: 2026/09/28
Abstract:
Artificial Intelligence (AI) has emerged as a transformative technology capable of improving business efficiency, innovation, and competitiveness across different sectors of the economy. This study examined the impact of artificial intelligence in enhancing Small and Medium Scale Enterprises (SMEs) in Nigeria. Specifically, the study investigated the effect of AI adoption on operational efficiency, customer satisfaction, sales growth, and innovation performance. The study adopted a quantitative survey research design. Data were collected from 240 SME owners and managers selected from Lagos, Kano, Port Harcourt, Enugu, and Lokoja using a structured questionnaire. Descriptive statistics, Pearson correlation, and multiple regression analysis were employed for data analysis. The findings revealed that AI adoption has a significant positive effect on operational efficiency (? = 0.312, p < 0.01), customer satisfaction (? = 0.287, p < 0.01), sales growth (? = 0.341, p < 0.01), and innovation performance (? = 0.298, p < 0.01). The study also found that digital literacy and access to affordable internet infrastructure significantly moderate the relationship between AI adoption and SME performance, enhancing the positive effects of AI technologies. The paper concludes that Artificial Intelligence technologies such as chatbots, predictive analytics, automated accounting systems, and generative AI tools can substantially enhance the productivity and competitiveness of Nigerian SMEs, contributing to sustainable economic development. The study recommends increased government support for digital infrastructure, AI training programs, and affordable technology financing schemes for SMEs.