Assessing the Impact of Digital Diaspora on SMEs Performance in Nigeria

This study examines the evolving role of the Nigerian digital diaspora in supporting the growth and transformation of Small and Medium Enterprises (SMEs) in Nigeria through digitally mediated engagement. Recognizing the increasing importance of transnational networks in development, the research explores how various forms of diaspora support ranging from remittances and digital mentorship to market access facilitation and online advocacy contribute to SME performance across key indicators such as revenue growth, innovation output, and digital adoption. The study adopts a mixed-methods approach, combining survey data from 250 SMEs with in-depth interviews of 15 diaspora and local stakeholders. Quantitative findings reveal a statistically significant and positive relationship between digital diaspora involvement and SME revenue and innovation performance, with industry sector acting as a moderating factor amplifying benefits in ICT and creative sectors while limiting them in agriculture and retail. Qualitative insights highlight both the promise and complexity of diaspora-SME collaboration. While diaspora actors frequently introduce new tools, clients, and ideas to local enterprises, challenges such as trust deficits, poor digital infrastructure, platform inefficiencies, and uneven digital literacy among SMEs constrain sustained engagement. Notably, diaspora endorsement was perceived as a key reputational asset, enhancing SME credibility and access to new networks. The study contributes to the growing discourse on diaspora-led development by positioning the digital diaspora not just as remittance senders, but as strategic agents of innovation, knowledge transfer, and business model evolution. Policy recommendations call for inclusive digital capacity-building, improved diaspora-SME interface platforms, and sector-specific interventions to ensure equitable access to diaspora capital and expertise.