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In these days, the adoption of information technology (IT) in business operations is no longer privilege to large organizations; Small-Medium-Enterprises are also trying to adopt the IT in process of gaining the benefits of using it. Nigerian SMEs have been slow to adopt EDI due to perceived high cost of implementation, lack of willing trading partners and lack of awareness of EDI benefits. However, there has been little research conducted and published on the adoption of Electronic Data Interchange among SMEs in Nigeria. Most previous researches done in the context of developed countries. This study aimed to examine factors affecting the adoption of EDI Technology in Nigerian SMEs and to proposed EDI Technology model to the Nigerian SMEs. The study accepts three factors as determinants of the adoption of electronic data interchange (EDI): perceived benefits, organizational readiness and perceived pressure. A model of Iacovou et al.,(1995) used to test the adoption of EDI as was found to be influential in prior EDI research. The primary data was collected by distributing questionnaires to 306 SMEs out of 1500 SMEs in the Northern part of Nigeria their responses analyzed using the SPSS software. All three factors were found to be significant in SMEs EDI adoption, with direct benefits, financial resources, and external pressure being considerably more important than technological resources and internal pressure.