Small and Medium-Sized Enterprises and the Socioeconomic Factors in a Globalized Digital Era in Nigeria

This paper investigated the influence of global digital trends on the activities of small and medium-sized enterprises in Nigeria and identified some socioeconomic factors that constrain the full potential of SMEs considering the ongoing digital transformation in Nigeria. It examined the adoption of digital technology among Nigerian SMEs, identified challenges hindering digital integration, and proposed the need for SMEs to overcome inherent sociocultural biases to enhance competitiveness. Primary data was gathered through survey questionnaires administered to and completed by 124 SME operators across the six geo-political zones of Nigeria. Secondary data was obtained from journals, publications, articles, and reliable internet sources. The study found that over 25% of SME operators recognise that digital electronic platforms have positively impacted SMEs, while over 30% see social media tools as a vital contribution to the business performance of SMEs. The study’s findings show a significant correlation between gender and income generation of SMEs in Nigeria. However, gender disparities persist within the Nigerian business sector, with women constituting only 32.3% compared to men's 67.7% population in the study. The Covid-19 pandemic, Russia-Ukraine war, and rising cost of living have led to a recent contraction of the economy, while the government’s 8-month ban on Twitter between June 2021 and January 2022 led to daily losses of about ₦448 million (about $1 million), amounting to over ₦107 billion. Although agriculture, manufacturing, and ICT (i.e., information and communications technology) are leading rebounds in the economy, digital infrastructure remains inadequate for millions of SMEs not in major cities.