How Nigeria can harness AI for economic growth and digital transformation

On 30 October 2024, I will address policymakers, business leaders and international investors at the annual FT Africa Summit in London on strategies for advancing artificial intelligence (AI) and technology in Africa. Consequently, I’ve been exploring the transformative potential of artificial intelligence (AI) and technology across major African tech markets, with Nigeria as a standout case study. Nigeria, Africa’s largest economy with over 200 million people and a rapidly expanding tech ecosystem, presents a unique and compelling opportunity to harness AI for digital transformation. With a commensurate strategic focus, AI could accelerate Nigeria’s path toward becoming a major player in the global digital economy.

AI as a catalyst for Nigeria’s digital economy. Nigeria has established itself as a powerhouse in Africa, with a vibrant economy, a population exceeding 200 million, and a flourishing tech ecosystem that has produced notable “unicorns” like Flutterwave and Andela. In 2021, Nigerian startups attracted over $1.2 billion in venture capital, underscoring the country’s status as a major tech hub. However, Nigeria has yet to fully integrate AI as a foundational element of its digital economy. This presents a significant opportunity: AI can facilitate economic leapfrogging, allowing Nigeria to bypass traditional industrialization stages and connect directly with the global digital economy.

The transformative potential of AI in Nigeria spans multiple sectors—finance, healthcare, agriculture, and education. But for Nigeria to truly leverage this, there must be cohesive efforts from all stakeholders to foster large-scale adoption and supportive regulatory frameworks.

Creating an AI-driven ecosystem in Nigeria is to truly capitalize on the potential of AI, by ensuring a holistic and collaborative ecosystem must be developed. Infrastructure is a critical starting point. The government and private sector must continue to invest in critical infrastructure such as data centers, cloud computing capabilities, and high-speed internet, especially in rural and semi-urban areas. Nigeria has already made strides in tech infrastructure with the rapid expansion of broadband access, but further investment will be needed to sustain AI development.

Moreover, developing human capital is essential for Nigeria’s advancement in AI. With a youthful population representing a significant talent pool, educational institutions must rapidly incorporate AI, machine learning, and data science into their programs. Collaborations with technology companies can facilitate practical training, enhancing the transfer of knowledge necessary for fostering AI innovation. Such initiatives can equip the workforce with the skills required to thrive in an AI-driven economy, ultimately boosting Nigeria’s competitive edge in the global tech landscape.

Fostering AI in key sectors-Nigeria’s most promising opportunities for AI implementation lie within sectors poised for substantial growth. In the financial sector, AI can enhance access to banking services through mobile banking solutions and advanced fraud detection systems, driving financial inclusion for underserved communities. Similarly, in agriculture, AI technologies can optimize farming practices, boosting productivity and helping Nigeria address food security challenges exacerbated by climate change.

AI can revolutionize healthcare in Nigeria by improving diagnostic tools and making processes more efficient. With its ability to analyze vast amounts of data, AI can support early disease detection and offer personalized treatment plans. This is especially important in a country with a large population and limited healthcare resources, as AI solutions can help address gaps in care, enabling healthcare providers to reach more patients and improve overall outcomes.

Nigeria’s emerging AI policy framework, a step forward- For AI to truly take off in Nigeria, strategic partnerships—both local and international—will be essential. Nigeria has already taken steps in the right direction with the Nigerian Data Protection Regulation (NDPR), which provides a foundation for safeguarding data privacy and security. To further support AI adoption, expanding these regulatory frameworks to specifically address AI-related technologies will be key. This will ensure that AI is adopted responsibly, transparently, and inclusively, balancing innovation with ethical considerations.

A significant milestone in this journey is the launch of the Nigeria Artificial Intelligence Research Scheme (NAIR), introduced by the National Information Technology Development Agency (NITDA). This scheme is designed to fuel AI innovation by offering grants to researchers and startups and promoting local advancements in AI while facilitating a supportive ecosystem that drives sustainable growth across various sectors.

In addressing concerns around AI despite advancements, AI is often viewed with trepidation, particularly concerning its potential impact on employment. It is an understandable fear on a continent with high unemployment. The worry is that AI could lead to job losses in sectors where automation could replace human roles. Concerns about data privacy, AI hallucinations, and cybersecurity also contribute to the unease. However, many now recognise that while AI may eliminate certain jobs, it creates new opportunities for people to learn new skills and remain competitive in the AI-driven economy. Many companies and startups are creating avenues for this by focusing on reskilling workers to prepare them for jobs in a new digital landscape.

The road ahead for Nigeria- Nigeria is well-positioned to leverage AI as a key component of its digital transformation, but the road ahead requires concerted effort. With the right mix of policies, partnerships, and investments, Nigeria can move from being a passive player in the AI revolution to an active regional leader, ensuring that AI not only boosts the economy but also fosters a more inclusive and equitable digital future.

Opinions expressed do not necessarily reflect those of the organisations with which Kyerematen-Jimoh is involved.

By Angela Kyerematen-Jimoh, African Technology Business Expert and Member, Forbes Technology Council