Small and medium-sized enterprises (SMEs) in Nigeria are increasingly turning to artificial intelligence (AI) to boost productivity and improve customer engagement. Among the most notable tools are chatbots, AI-powered virtual assistants that can handle customer inquiries, automate repetitive tasks, and even aid in sales and marketing.

According to a 2025 report by Techpoint Africa, nearly 40 percent of Nigerian SMEs have integrated at least one AI tool into their operations, with chatbots being the most commonly adopted.

Chatbots Transforming Customer Service

For many Nigerian businesses, providing timely and efficient customer support has been a persistent challenge. Lagos-based fashion retailer, StyleHive, shared that before using a chatbot, their support team struggled to respond to inquiries promptly, especially during peak sales periods.

“Since introducing our AI assistant, response times have dropped from hours to seconds,” said founder Chidinma Okafor. “Customers can now track orders, check product availability, and even make payments through the bot without waiting for a human agent.”

Experts say this shift is particularly important in Nigeria, where SMEs often operate with lean teams and limited resources. Chatbots help bridge staffing gaps while maintaining high service quality.

Boosting Sales and Marketing

Beyond customer service, chatbots are also enhancing marketing efforts. Businesses use AI to send personalized promotions, collect feedback, and guide customers through purchasing decisions.

According to AI solutions provider SmartBot Africa, SMEs that implemented chatbots saw an average 25 percent increase in sales conversion within the first six months. “These tools allow businesses to engage customers 24/7, even outside regular working hours, which is a game-changer for small enterprises,” said CEO Oluwaseun Adeyemi.

Challenges and Considerations

Despite the benefits, integrating chatbots comes with challenges. High setup costs, lack of technical expertise, and concerns over data privacy can deter SMEs from adopting AI.

“The technology is promising, but small business owners need proper training to maximize its potential,” said Dr. Aisha Bello, a technology consultant based in Abuja. “Without the right strategy, chatbots can feel impersonal or fail to deliver the desired results.”

Additionally, SMEs must ensure compliance with Nigeria’s data protection laws, particularly when handling customer information.

The Road Ahead

Industry analysts predict that the adoption of AI and chatbots among Nigerian SMEs will continue to grow rapidly. With more affordable solutions and increased awareness, experts believe that chatbots could become as ubiquitous as mobile phones in small business operations.

“AI is no longer a luxury for big corporations,” Dr. Bello said. “For SMEs willing to invest in training and proper implementation, chatbots offer a real opportunity to compete on a global scale.”

As Nigerian businesses increasingly embrace digital transformation, the humble chatbot is proving that even simple AI tools can make a big difference in everyday operations.