General News
How Digital Technology Has Redefined the MSME Sector
By Adeniyi Ogunfowoke,
The MSME sector is the backbone of Nigeria’s economy. Studies by the International Finance Corporation (IFC) show that approximately 96% of Nigerian businesses are MSMEs, compared to 53% in the US and 65% in Europe. Of this number, about 99.87% of MSMEs in Nigeria are micro-enterprises. With a total number of about 17.4 million, SMEs contribute about half (48%) of the entire GDP in Nigeria.
Thanks to digital technology, it is worth noting that ecommerce platforms like Jumia have so far played a key role in boosting and accelerating MSMEs in the last 7 years. A significant number of MSMEs are riding on the Jumia platform to reach millions of customers in Nigeria and across Africa. Today, these MSMEs are raking in more revenue compared to the past.
The fact is, there is a link between technology adoption and the MSME sector growth with some stating that MSMEs who were early adopters of the technology have increased their annual revenue 15% faster than their competitors. This is what the vendors on Jumia are currently enjoying. This article explores the five leading ways in which technology will encourage growth in the MSME sector.
Creating a digital business
Thinking through and executing a digital business model requires a fundamental shift in strategy because it is completely different from offline business. In this case, you either bring out a new offering or take the existing offering to market in newer ways. This means being able to explore technologies such as the Internet of Things and Artificial Intelligence to make the customer experience seamless. The option for digital technology in MSMEs is numerous. It only requires very strong business understanding to be able to analyze what the ecosystem looks like, have a very strong understanding of the customer and their insatiable expectations to be able to devise an appropriate strategy to create the digital business that meets their needs.
Social impact
You can’t afford to operate your business as if it exists in a vacuum any longer. The rise of social media networks such as Twitter, Facebook and Instagram mean your customers are simply a click away and now users can connect without regard to the geographical obstacle, financial background, or even social status. Indeed, in the past, there were very limited avenues for customers to raise their queries but now as a business, you are likely to incur an unfavourable rant or a bad review on Facebook. This is why as a business, you should not compromise on standards because what goes on on the Internet stays on the Internet. This means that if you earn a bad reputation, it’s going to stick with you. It is for this reason that businesses large and small worry about their digital footprint and a good number of organisations have experts who are on the lookout for potential “bad press” and are out making the rounds trying to be proactive.
Increased interest in and need for security
Businesses of all sizes need to be increasingly aware of the need for enhanced security. The rise in cyber-crime has also led to an increase in interest in protecting data, training employees and incorporating IT into every aspect of the business. At the very least, an organization needs to be committed to protecting data with backups, integrating patches and updates regularly and training all employees to spot the signs of trouble.
Connectivity
Digital technology has also increased the ease with which we can all stay in touch, interact and engage. Whether it’s having your coworkers and employees available via text/video chat at a moment’s notice, or being able to send targeted promotional email blasts to pre-qualified customers when they’re shopping at nearby businesses, the rise of mobile technology has blended almost seamlessly with communication software to create a web of real-time information.
Improved access to information and data
Digital Technology has made it easier than ever to research and find data without leaving the office. Enhanced access to data gives your business the ability to offer your customer service team not only a way to connect with customers but also a way to instantly access complete customer history. In addition to this, you can provide a better user experience for anyone who interacts with your brand.
Irrespective of how big or small a business enterprise is, application of digital technology offers numerous benefits including those that facilitate the smooth running of business operations. These benefits are sometimes tangible while other times; they are intangible. The bottom line is that business applications play a significant role in increasing profitability for businesses while generating the results that customers need.
National Identity Management Commission (NIMC) has announced that as of February 28, 2025, the number of Nigerians enrolled in the National Identification Number (NIN) database has reached 117.3 million.
This marks a significant increase of over seven million registrations since September 2024, when the figure stood at 110 million.
Gender and State Distribution
The latest statistics reveal that 56.5% of registered individuals are male, totaling 66.2 million, while 43.5% are female, at 51.07 million.
Among states, Lagos leads with 12.6 million registrations, followed by Kano with 10.2 million and Kaduna with 6.9 million.
This is consistent with the high populations in Lagos and Kano.
Other states with notable enrolment numbers include:
Ogun (4.9 million),
Oyo (4.5 million),
Katsina (4 million).
In contrast,
Bayelsa (758,111),
Ebonyi (990,775),
have the lowest enrolment figures.
The government has been emphasising the need for citizens to link their NIN to access essential services, including social services, financial transactions, and telecommunications.
A well-developed and accessible digital ID system is seen as vital for effective digital governance.
Beyond strengthening security and promoting transparency, this initiative aims to enhance the efficiency of service delivery across the country.
As part of efforts to reform the economy for sustained and inclusive growth, the Director-General, National Information Technology Development Agency, (NITDA) Kashifu Inuwa, CCIE has called for a collaborative partnership between NITDA and the MTN Foundation to promote digital literacy and capacity building in Nigeria.
Inuwa made this call during a courtesy visit by MTN Foundation delegation, led by Odunayo Sanya, at the Agency’s Corporate Headquarters in Abuja.
The Director-General emphasised the importance of synergy in fostering digital literacy and advancing President Bola Ahmed Tinubu’s agenda of promoting industrialisation to create a dynamic and diverse economic landscape.
He noted that NITDA’s initiative, DL4ALL, aims to achieve 95% digital literacy across the country by the year 2027. “This aligns with the Agency’s strategic pillar of fostering digital literacy and cultivate talents,” he noted.
Inuwa also highlighted NITDA’s dedication to developing a digital literacy framework based on UNESCO and DigiCom standards, adding that the Agency is collaborating with stakeholders to create a three-phase curriculum for primary, secondary, and tertiary institutions, with a focus on prioritising skills over certifications.
The MTN Foundation shares similar goals and currently offers online programmes featuring over 4,000 courses, with 2,000 young Nigerians already registered.
Mr. Sanya commended NITDA’s initiatives and invited the Agency to unveil its academy platform on April 17th of this year.
Both organisations have agreed to establish a committee to efficiently achieve their shared objectives. This partnership is expected to drive digital literacy and capacity building in Nigeria, aligning with the country’s national development agenda.
MTN Nigeria is set to bring its Go Make A Difference (Go M.A.D) campaign to Aba, Nigeria’s renowned enterprise hub, on Sunday, March 23, at Sugarland, Luxury City Hotel.
This initiative continues MTN’s mission to inspire Nigerians to take deliberate steps toward community development and digital empowerment.
Speaking with the press at the campaign launch, Onyinye Ikenna-Emeka, Chief Marketing Officer of MTN Nigeria, shared the inspiration behind the Go M.A.D initiative. “At MTN, we believe in driving progress, giving our customers the power to rise above challenges and create something extraordinary. The Go M.A.D campaign is rooted in the belief that MTN data gives you the power to take on the world, to achieve the extraordinary, and to make a meaningful difference, in your community, your family, and your workplace. It’s our way of saying: we see you, we support you, and we’re here to make your journey better.”
Following exciting stops in Abuja, Enugu, Calabar, Ibadan, and most recently Benin, the campaign now heads to Aba with a promise to spotlight the city’s rich entrepreneurial spirit and creative talent.
In Aba, attendees can expect a thrilling fusion of technology, entertainment, and culture, with augmented and virtual reality zones, a flash mob, interactive games, special guests and inspiring real-life stories. The event will also feature Kahoot trivia games, a Go MAD puzzle, a pledge wall, and giveaways of MTN-branded merchandise and digital devices.
A highlight of this event will be the Talent Showcase, dedicated to spotlighting Aba’s emerging creatives and innovators. This platform provides local talents the opportunity to share their creative skills and connect with a broader audience.
Set against the backdrop of Aba’s reputation as a powerhouse of local industry and innovation, the event will celebrate individuals, known as Go MAD Icons, who are making a difference through MTN Data by driving social impact, growing businesses, or sharing knowledge digitally. These icons will serve as powerful reminders of what’s possible when creativity meets connectivity.
As with the previous activations in Abuja, Enugu, Ibadan, Calabar and Benin, cultural expression will remain central to the experience, with performances and installations that pay homage to the Igbo culture while encouraging young people to take positive action in their communities.
MTN’s Go MAD campaign is not just a series of events; it’s a national call to action. By merging storytelling, digital experiences, and grassroots inspiration, the campaign continues to engage Nigeria’s youth and highlight how technology can be a force for change.
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