SMEs Contribute $2 Billion to Nigeria’s GDP Using Meta’s Platforms – Report
By Aboki Forex —
Small and medium enterprises (SMEs) boosted Nigeria’s gross domestic product by $2 billion last year, according to a new report from independent research firm Public First. The study found that 14 million Nigerian SMEs used Meta’s apps, including Facebook, Instagram, WhatsApp, Messenger, Meta AI, and Threads, to start and grow their businesses in 2024.
This activity delivered an estimated $640 million in productivity gains through more efficient instant messaging. The National Bureau of Statistics (NBS) defines SMEs as businesses with 10 to 199 employees and assets between N5 million and N500 million. SMEs account for over 96 per cent of all businesses in Nigeria, employ roughly 84 per cent of the workforce, and contribute more than 45 per cent to the national GDP.
Despite driving employment and innovation across wholesale, agriculture, and manufacturing, SMEs face systemic bottlenecks. These include high borrowing costs, inadequate infrastructure, and multiple taxation. For many small businesses, Meta’s platforms have become a primary sales and discovery channel.
According to the report, 81 per cent of online businesses surveyed said Facebook, Instagram, and WhatsApp expanded their customer base beyond local geography. This reduces customer acquisition costs and gives a business in Kano access to the same advertising and commerce tools available in Lagos, London, or New York. Additionally, 93 per cent of online adults said they feel more connected to a wider community through Meta’s family of apps.
Alison Neyle, Director at Public First, said: “Nigeria’s digital transformation is creating new opportunities for businesses, creators and consumers alike. The findings show that Meta’s platforms are helping Nigerian firms grow across formal and informal sectors, supporting entrepreneurship and strengthening participation in one of the world’s most rapidly expanding digital economies. With the right combination of infrastructure, platform access and open-source AI, the upside for Nigeria is significant.”
The report, titled “Nigeria’s Digital Economy,” found that under the right conditions, this contribution could grow to $2 billion as digital adoption deepens. Meta’s platforms function as essential digital infrastructure connecting Nigerian entrepreneurs to customers, markets, and new economic opportunity. Virtually all Nigerian businesses surveyed said Meta’s platforms expanded their customer reach. The research estimates Meta is contributing $820 million in annual economic value to Nigeria today, with AI adoption set to add $22 billion to GDP by 2035.
WhatsApp plays a central role in connecting Nigerians to AI and new economic opportunities. The platform serves as Nigerians’ primary AI surface. This reflects a wider regional pattern where 93 per cent of Meta AI prompts in Sub-Saharan Africa are made via WhatsApp. AI adoption in Nigeria is happening through the tools people already use every day.
Balkissa Ide Siddo, Director of Public Policy, Sub-Saharan Africa at Meta, said: “Nigeria is one of the most dynamic, entrepreneurial and digitally engaged markets in the world. This research makes clear the scale of what is possible when Nigerian ambition meets the right digital tools. From a tailor in Lagos reaching customers across the country through Instagram, to a small business owner in Kano taking orders on WhatsApp, to a creator in Abuja building a global audience on Facebook, Meta’s platforms are removing the traditional barriers to growth and unlocking real economic opportunity. The fact that 80 per cent of Nigerians say access to reliable internet has improved compared to a decade ago speaks to the progress already made. With continued investment in connectivity, smart policy that supports innovation, and the rise of open-source AI built for and by Africans, Nigeria is exceptionally well positioned to lead the continent’s next decade of digital growth. We are proud to be a long-term partner in that journey.”
The research highlights the transformative potential of artificial intelligence for Nigeria’s economy and innovation ecosystem. AI could add $22 billion to Nigeria’s GDP by 2035 with the right combination of investment, policy, and innovation. 87 per cent of online Nigerians say AI products developed within Africa will be important for the continent’s economic growth. Open-source AI gives Nigerian developers, businesses, and creators the opportunity to build solutions in local languages for local needs.