Microsoft has released a new white paper outlining a roadmap for accelerating Nigeria’s artificial intelligence transformation, identifying key opportunities and challenges the country must address to unlock the full potential of the technology.
The report, ‘AI in Nigeria’, was commissioned by Microsoft and produced in collaboration with PwC and Lagos Business School. Its findings were unveiled during Microsoft AI Skills Week in Lagos, a five-day event that brought together customers, business leaders, developers, and end users to explore practical AI applications and skills development.
According to the report, implementing AI across sectors such as finance, agriculture, healthcare, and e-commerce could help tackle inequality and stimulate inclusive growth.
However, it warned that several barriers, including inadequate infrastructure, lack of skilled talent, regulatory uncertainty, and weak data systems, must be overcome to achieve meaningful progress.
“Although AI is still an emerging field with early-stage applications in Nigeria, global advancements and the growing recognition of AI’s transformative power have catalysed a shift in mindset across the country,” the Managing Director of Microsoft Nigeria and Ghana, Ola Williams, said in a statement on Monday.
He added, “Entrepreneurs, researchers, and policymakers are now exploring AI to address local needs and drive growth.”
The white paper noted that initiatives such as the Nigeria Artificial Intelligence Research Scheme, the National Centre for Artificial Intelligence and Robotics, and the recently published National AI Strategy indicate growing government interest in AI as a driver of economic development.
It also cited sector-specific progress, highlighting Nigerian banks’ use of chatbots for customer service, AI-powered business coaching tools in e-commerce platforms like Bumpa, and agriculture services such as Kitovu, which deploys AI for personalised crop analysis.
However, it warned that low awareness among business leaders, limited access to quality data, and fear of job loss continue to slow AI adoption. The report added that the emigration of skilled professionals and the complexity of AI concepts further complicate efforts to build local expertise.
To address the skills gap, the report referenced initiatives such as the Federal Ministry of Communications, Innovation and Digital Economy’s Three Million Technical Talent programme and Microsoft’s AI Skills Navigator, which aim to train and empower a new generation of Nigerian AI professionals.
Partner and WMA Consulting Risk Services Leader at PwC Nigeria, Olufemi Osinubi, said, “We stand at a pivotal moment where AI is revolutionising industries and transforming economies. While AI’s benefits are immense, balancing risks and rewards is crucial.
“By building trust and robust governance frameworks, Nigeria can overcome challenges and harness AI’s potential, unlocking significant growth and driving transformation across businesses and society.”
The report stressed the need to incorporate AI into education through intelligent tutoring systems and personalised learning tools. Drawing on international examples, it noted that similar platforms have improved learning outcomes in Uganda and India and could be adapted to close educational equity gaps in Nigeria.
Addressing public concerns about job displacement, the report cited surveys showing that most Nigerian workers expect generative AI to enhance efficiency and creativity. A recent CEO survey found that only 13 per cent of sub-Saharan firms that adopted AI had reduced their workforce.
“We believe this white paper will serve as a powerful blueprint for AI advancement in Nigeria,” said Dean and Professor of Information Systems at Lagos Business School, Olayinka David-West.
“Our commitment at Lagos Business School is to partner with government and industry not only in defining AI strategies and use cases but also in building the analytical capabilities, ethical mindsets, and leadership competencies required to sustain Africa’s digital renaissance.”
The report concludes with a call for collaboration among government, academia, and the private sector to ensure Nigeria keeps pace with global developments in AI and becomes a digital powerhouse in the region.
