By Kenneth Oboh

In a bid to accelerate the adoption of AI-driven automation among small and medium-sized enterprises (SMEs) in Nigeria, industry experts have emphasized the critical role of automation in boosting efficiency, reducing costs, and driving business growth. The discussion took center stage at a recent automation clinic held at Virbanium Valley, 42 Local Airport Road, Lagos, where SME owners, tech innovators, and business leaders gathered to explore the future of AI in Nigeria’s business landscape.

The initiative, spearheaded by Timilehin Makinde, Director of Automation at Grange Labs, and Okusi Daniels, Creative Director at Grange Labs, sought to address the growing need for AI-powered solutions to help SMEs navigate an increasingly digital economy.

According to industry analysts, automation has become a necessity rather than an option, as businesses struggle with inefficiencies caused by manual processes, rising operational costs, and global competition. A 2024 report by the Nigerian Association of Small and Medium Enterprises (NASME) revealed that over 60% of SMEs cite inefficiency as a major barrier to growth, with many failing to scale due to reliance on outdated operational models.

In his remarks, Timilehin Makinde stressed that automation is not about replacing human jobs but rather about enhancing productivity and optimizing business operations.

“Many Nigerian businesses are stuck in repetitive manual processes that slow down growth. Automation is the key to unlocking efficiency, and those who embrace AI now will be ahead of the curve,” Makinde stated.

He highlighted the impact of business process automation (BPA), demonstrating how AI-driven tools can streamline invoice processing, inventory management, customer relationship management (CRM), and cybersecurity.

AI and the Future of SME Marketing

During the session, Okusi Daniels explored how AI is revolutionizing digital marketing and customer engagement, particularly for businesses that lack the resources for large marketing teams.

“AI-powered marketing automation allows businesses to reach their customers faster and with more personalized experiences. From chatbots handling inquiries to AI-driven analytics optimizing ad spending, small businesses can now compete with larger corporations,” Daniels explained.

His session covered key areas such as:

• AI-generated content and automated social media management.
• Personalized customer engagement through data-driven insights.
• The role of AI in predictive analytics for business strategy.

Challenges in AI Adoption for SMEs

While the benefits of AI automation are evident, adoption remains slow due to factors such as cost barriers, lack of awareness, and workforce resistance. Many SME owners at the event expressed concerns about the technical complexity of AI tools and the potential displacement of employees.

Addressing these concerns, Makinde emphasized the need for businesses to focus on reskilling and upskilling employees to work alongside AI rather than view it as a threat.

“AI does not replace workers—it enhances their roles. The real challenge is ensuring that businesses provide the necessary training for employees to adapt to these new technologies,” he added.

A Growing Shift Towards AI-Driven Businesses

Despite the challenges, momentum for AI adoption is growing, with more businesses recognizing the long-term benefits of automation. The event concluded with a commitment to driving AI awareness and providing SMEs with resources to integrate automation into their daily operations.

With Nigeria’s digital economy expanding, experts predict that AI-driven automation will become a defining factor for SME success in the coming years. As businesses increasingly shift toward data-driven decision-making, process optimization, and AI-enhanced customer experiences, those who embrace automation now will lead the next wave of business transformation in Nigeria.