Characterisation and digital maturity assessment of MSMEs in Nigeria by GIZ/digital transformation center Nigeria

As part of ongoing efforts to strengthen Nigeria’s innovation ecosystem, the European Union and the German Government, through GIZ’s Digital Transformation Center Nigeria (DTC Nigeria), commissioned a landmark study on the Characterisation and Digital Maturity Assessment of MSMEs in Nigeria. The research was conducted by Apodissi Ltd across ten Nigerian states namely Abia, Abuja, Benue, Enugu, Kano, Lagos, Niger, Ondo, Rivers, and Sokoto targeting 1,811 MSMEs in three key sectors: Green Economy (green energy, recycling, and agriculture), Manufacturing, and Trading.

The study generated data-driven insights on the digital maturity of MSMEs, exploring their current use of digital tools, attitudes toward digitalization, and the demographic, geographic, and sectoral variables influencing digital uptake. 

From the report, the acute challenges facing MSMEs include inflation, rising operational costs, lack of power, limited access to finance, and high equipment costs. For instance, 72% of respondents cited increasing costs (raw materials, logistics, energy) as their biggest hurdle, while 59% mentioned inflation and 36% noted the prohibitive cost of equipment.

Despite these challenges, there is a widespread belief in the potential of innovation and technology to enable growth. The most commonly used digital tools included mobile applications (84%), SMS (75%), USSD codes (65%), email (60%), and internet services (53%).

The research also classified MSMEs into three digital maturity personas based on their knowledge, usage, and attitudes toward digital technology:

• Reinventors (61%) – actively leveraging digital tools to transform their businesses
• Adaptors (27%) – open to digitalisation but need support
• Sceptics (12%) – cautious or hesitant toward digital adoption

This research provides a crucial evidence base for supporting Nigeria’s MSMEs to unlock the benefits of digital transformation. For full insights, read the complete report here https://tinyurl.com/GIZDTCNigeria