This study explored the Impact Socio-Economic Impact Of Social Media Adoption In Nigeria A case of selected SME’s in Lagos state. Simple random sampling technique was used to get the desired sample size (30 respondents). Questionnaires were used to collect data. The study relied on  social  network theory and Media Uses and Gratifications theory .The researcher found out that most respondents have social media account (s) with facebook or twitter handle accounts having the most users; social media is a powerful tool of sharing information among people of different social classes. It was also found out that social media creates product awareness can be used monitor customer experience. The study recommends for more presence of SMEs on social media and a combination of  both  social  media and traditional media by small businesses to reach a wider range of customers. The researcher also suggests for further studies on the usage patterns of social media users which could help a great deal in marketing of products.






                              Background of the study


This chapter introduces the study and provides the background to research topic. It discusses the concept of social media and narrows down to the penetration  of social  media in Nigeria. This chapter also discusses the adoption of social media as a new way of advertising and the application of social media marketing by network operators. Afterwards, the research problems and objectives of the study are stated, research questions provided along with justification, significance and the scope. The chapter will therefore define the operational terms that will be used in the study.



Just as the internet has changed the way people buy music, research school projects, organize activities and interact socially, it has also affected how they do business.  Through the use of social media, people can exchange photos and videos, share news stories, post their thoughts on blogs and participate in online discussions. Social media  also allows individuals, companies, organization and governments to interact with large number of people. This has made companies and organizations to market their businesses and products through blogs or sponsored postings on social media sites.



Social media refers to the means of interaction among people in which they create share, exchange and comment on contents among themselves in virtual communities and networks. Andreas Kaplan and Michael Heinlein (2001) define social media as “a group of Internet-based applications that build on the ideological and technological foundations of and that allow the creation and exchange of user-generated  content.  Furthermore, social media employs mobile and web-based technologies to create highly interactive platforms through which individuals and communities share, co-create, discuss, and modify user-generated content. It introduces comprehensive and substantial changes to communication between organizations, communities and individuals.



Different types of social media include collaborative projects such as Wikipedia, blogs such as Blogger, social networking sites like Facebook, content communities like  Youtube, and virtual worlds like Second Life. As  of 2012, social media has become one  of the most powerful sources for news updates through platforms such as Facebook, Blogger, Twitter, WordPress, VK (social network), LinkedIn,  Pinterest,  Google+. Tumblr, MySpace and Wikia. In addition, there has been an increase in mobile social media which has created new opportunities, in particular for business, which are able to utilize social media for marketing research, sales promotions, and customer relationship development among others.



Much  of the criticism on social media is about its exclusiveness as most sites do not  allow the transfer of information from one to another, disparity of information available, contention with trustworthiness and reliability of information presented, concentration, ownership of media content, and the meaning of interactions created by social media. However, it is also argued, that social media has positive effects such as allowing the democratization of the internet while also allowing individuals to advertise themselves and form friendships. Social media differs from traditional/industrial media in many aspects such as quality, reach, frequency, usability, immediacy and permanence. As of 2012, the effects of internet usage on social media, according to Nielsen, are that internet users continue to spend more time in social media than any other site. Statistics illustrate that the total time spent on social media in the urban Nigeria across PC and mobile devices increased by 37 percent to 121 million minutes in July 2012 compared to 88 million minutes in July 2011.


While traditional social media offers a variety of opportunities for companies in a wide range of business sectors, mobile social media makes use of the location- and time- sensitivity aspects of it in order to engage into marketing research, communication, sales promotions/discounts, and relationship development/loyalty programs.


Statement of the problem


Social media has become a platform that is easily accessible to anyone with internet access. Increased communication for organizations fosters brand awareness and often, improved customer service. It is self-evident that Small and medium-sized enterprises (SMEs) in Nigeria are characterised byinadequateresources,lackofmanagementskillsamongothers,thereforesocial media serves as a relatively inexpensive platform for organizations to implement marketing campaigns. The main purpose of this research was to determine the extent of social media usage in Nigeria.


Objectives of the study

The main objectives of this study is to investigate the impact of social media usage in Nigeria

The study have the following specific objectives of the study;

  1. To determine the effect of social media in development of Nigeria
  2. To find out how social media affects sale volume of Small and medium-sized enterprises (SMEs)
  • To profer a workable recommendations in sustenance of social media usage in Nigeria

Research questions


  1. What are the effect of social media in development of Nigeria?
  2. How do social media affects business operations in Nigeria ?
  • What are the workable recommendations in sustenance of social media usage in Nigeria?






The concept of social media is a very recent phenomenon. Therefore its discourse in the academia is still developing and thus ensuring theoretical and practical underpinnings of the concept to the domain of communication still deserve an ongoing empirical inquiry. This warrants more research to shed more light on new media.



Significance of the study


This study had both practical and theoretical relevance.

In terms of practice the study revealed how social media impacts on customer loyalty and the creation of product awareness.

The study also formed a basis for future researchers who may wish to develop the study further. It provided a deeper understanding of social media  as technological phenomena. In terms of theory, the study contributed to development of conceptual  models  with which to study and understand the concept of social media.


Scope of the study


The study was conducted to assess the impact of social media usage in Nigeria , it covers business and economic perspectives of social media usage.




One of the expected challenges was enlisting corporation of respondents and their willingness to participate in the study. The respondents also took a  longer  time  to respond to the questionnaire. The researcher overcame this by giving enough time to the respondents so that they could fill in their responses at their most convenient time.


Definitions of terms


Social media- Refers to online technology tools that enable  people  to  communicate easily via the internet, to share information and resources. Social media can include text, audio, video, images podcast and other multimedia.

Social network- A social network refers to the set of relationships among individuals or social groups.

Social networking sites- These are web –based social platforms. Such as Facebook, Twitter, LinkedIn among others where people network and share with friends and family online (Taylor, Lewin &Strutton, 2011).

Consumer loyalty- Consumer loyalty is defined as a strong emotional attachment to the firm that is manifested in the customer behavior like staying with the company, recommending it, buying additional product/services and so forth (Crosby, 2002).

Customer relationship management- Customer relationship management means developing a comprehensive picture of customer needs, expectations and behaviors and managing those factors that affect business performance.

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