AI Adoption Rises In Nigeria Despite Gaps in Infrastructure, Policy

Nigeria is accelerating its adoption of artificial intelligence (AI), driven by an energetic technology ecosystem, expanding private-sector experimentation and a youthful talent pool eager to build careers in advanced digital systems.

But while the country is increasingly recognised as one of Africa’s promising AI hubs, analysts warn that long-standing structural constraints continue to blunt its competitiveness in the global AI race.

Over the past five years, Nigeria’s AI journey has shifted from hype to measurable application. Banks and fintech companies have moved beyond pilot projects, deploying machine learning tools for fraud analytics, real-time credit scoring and automated customer support.

Digital commerce platforms now use AI-enabled recommendation engines, while logistics start-ups rely on predictive modelling for route optimisation and delivery accuracy.

The health-tech space is witnessing similar growth. Local innovators are testing AI for early disease detection, medical imaging support and pharmaceutical supply-chain monitoring. In agriculture, start-ups are exploring tools for crop health diagnostics, weather forecasting, and yield prediction; however, adoption in the broader farming sector remains slow due to infrastructural and funding challenges.

Technology experts say the country’s most significant advantage is its innovative energy.

To assess Nigeria’s current standing, LEADERSHIP spoke with two ICT experts who offered contrasting but complementary views on the country’s progress.

According to Lagos-based digital analyst Temiloluwa Ajayi, Nigeria is “advancing, but not at the speed demanded by the global AI race.” She rated the country 7 out of 10 in Africa, citing strong entrepreneurial creativity and a fast-growing developer community. But on the global stage, she assigned Nigeria 4 out of 10, warning that “AI leadership requires deep, sustained investment in scientific research, national datasets, computing infrastructure and responsible governance, all areas where Nigeria is still playing catch-up.”

Ajayi emphasised the need for movement from strategy to execution, arguing that several government proposals remain on paper. “We need stable investment in computing infrastructure, incentives for local cloud providers and clear rules on responsible AI. Private-sector innovation alone cannot shoulder the burden of national competitiveness,” she said.

On his part, tech researcher, Mr. Samuel Akor Nigeria risks being overtaken by smaller African countries that are more deliberate and disciplined in their AI strategies.

He scored Nigeria 6.5 in Africa and 3.5 globally, describing the country’s progress as uneven and heavily concentrated around Lagos, Abuja and a few academic communities.

Akor stressed that regulation must protect citizens without stifling innovation. “Start-ups need predictable rules and investors need clarity. A fragmented regulatory environment slows innovation and undermines trust,” he said.

Meanwhile, findings from the 2025 AI Landscape Report. New data reinforces these expert concerns. The 2025 AI Landscape Report published by the AI in Nigeria Foundation reveals that while more than 120 active AI start-ups currently operate across the country, adoption remains uneven.

Financial services and ICT lead the charge, but critical sectors such as agriculture, manufacturing and healthcare lag due to funding constraints, low awareness and limited talent availability.

According to the report, 79% of AI start-ups identify limited access to capital as their biggest challenge, while over 50% struggle to find and retain skilled AI professionals. The report also highlights chronic infrastructure limitations, especially unstable power supply and unreliable internet outside major cities, as major barriers to scaling.

Stakeholders say Nigeria’s next steps must be deliberate and coordinated. Analysts recommend a three-pronged strategy which includes scaling digital infrastructure including broadband connectivity, cloud computing capacity and nationwide data centres.

With policy discipline, infrastructure investment and inclusive capacity development, Nigeria could reposition itself not only as a continental AI player but also as a meaningful participant in the global AI economy.