Impact of Digital Transformation on Small and Medium Enterprises (SMEs) In Nigeria: A Case Study of Abuja Municipal Area Council

Abstract

Digital transformation (DT) has emerged as a critical driver of business competitiveness, particularly for small and medium enterprises (SMEs) in developing economies like Nigeria. This study investigates the impact of digital transformation on the performance of SMEs in the Abuja Municipal Area Council (AMAC), focusing on operational efficiency, market reach, and financial performance. Using a quantitative approach, data were collected from 400 SMEs through structured questionnaires. Multiple regression analysis was employed to examine the relationships between digital transformation adoption (measured by digital technology use, digital skills, and e-commerce integration) and SME performance metrics. Findings indicate that digital transformation significantly enhances operational efficiency and market reach, with a moderate positive effect on financial performance. However, barriers such as limited funding and digital skills gaps hinder full adoption. The study recommends policy interventions to support digital infrastructure and training for SMEs in Nigeria.