SMEs Boost Nigeria’s GDP With $2bn Social Media-Based Sales – Report

Nigeria’s small and medium enterprises (SMEs) have contributed $2 billion to the country’s gross domestic product (GDP) through social media-based sales, according to a new report by independent research firm Public First.

The findings revealed that 14 million Nigerian SMEs used Meta’s platforms — Facebook, Instagram, WhatsApp, Messenger, Meta AI, and Threads — to start and grow their businesses last year, delivering an estimated $640 million in productivity gains through more efficient instant messaging.

SMEs account for over 96 per cent of all businesses in Nigeria, employing roughly 84 per cent of the workforce and contributing more than 45 per cent to national GDP.

Despite systemic challenges such as high borrowing costs, inadequate infrastructure, and multiple taxation, SMEs continue to drive employment and innovation across wholesale, agriculture, and manufacturing.

Meta’s platforms have become vital sales and discovery channels for Nigerian businesses. The report found that 81 per cent of online businesses surveyed said Facebook, Instagram, and WhatsApp expanded their customer base beyond local geography.

“Nigeria’s digital transformation is creating new opportunities for businesses, creators and consumers alike,” said Alison Neyle, Director at Public First. “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.”

The report, titled “Nigeria’s Digital Economy”, also highlighted the transformative potential of artificial intelligence (AI). It projects that AI could add $22 billion to Nigeria’s GDP by 2035, with WhatsApp serving as the primary AI interface for Nigerians. 93 per cent of Meta AI prompts in Sub-Saharan Africa are made via WhatsApp, reflecting how AI adoption is happening through everyday tools.

Balkissa Ide Siddo, Meta’s Director of Public Policy for Sub-Saharan Africa, noted: “Nigeria is one of the most dynamic, entrepreneurial and digitally engaged markets in the world. From a tailor in Lagos reaching customers through Instagram, to a small business owner in Kano taking orders on WhatsApp, Meta’s platforms are removing traditional barriers to growth and unlocking real economic opportunity.”

The report concludes that with continued investment in connectivity, supportive policy, and open-source AI built for Africans, Nigeria is well positioned to lead the continent’s next decade of digital growth.