The Centre for the Study of the Economies of Africa (CSEA), an Abuja-based nonprofit research think tank founded by former World Bank Managing Director and current Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo Iweala, on Wednesday released its findings on the deployment of Artificial Intelligence (AI) in selected sectors of the Nigerian economy.
At the event which took place in Abuja, the organisation stated that Nigeria’s Al market continues to grow and is set to reach $434.4 million by 2026, but adoption remains largely uneven.
Tagged: “Artificial Intelligence Usage in Nigeria: Evidence from Digitally-enabled Firms”, Executive Director of CSEA, Dr Chukwuka Onyekwena, in his opening remarks, noted that the occasion followed a rigorous research and analysis at a time where AI is redefining the boundaries of productivity and competitiveness across the world.
In embarking on the study, the executive director noted that the motivation was to contribute meaningfully to the growing body of knowledge that will help Nigeria to harness the potential of AI, while navigating the risks responsibly.
On the occasion which saw representatives of government, policymakers, captains of industry, AI developers, business leaders, academics and researchers, civil society organisations, as well as young professionals, Onyekwena stated that AI holds immense promise for driving innovation, enhancing productivity, and transforming business models.
“It has the potential to unlock new frontiers in healthcare, agriculture, manufacturing, financial services, education, and technology. It can empower firms to make smarter decisions, optimise operations, and reach new markets,” the executive director said.
Stressing that technology alone cannot deliver development, Onyekwena noted that it must be accompanied by sound policies, robust infrastructure, ethical safeguards, and, above all, a people-centred approach that ensures no one is left behind.
In his presentation, Research Associate, CSEA, Anthony Okon, explained that Al has been impactful across all sectors globally, with established impacts on firms, including helping to cut costs, improving efficiency and service delivery, as well as reaching underserved markets.
Pointing out that the Nigerian government was positioning Al as a driver of innovation and growth, to harness its full potential, guided by policies like the Nigerian Artificial Intelligence Policy (NAIP), he stated that while Al promises huge global economic gains, only a small share is expected for the Global South, highlighting the need for Nigeria to act or risk falling further behind.
“Nigeria’s Al market is set to reach $434.4 million by 2026, but adoption remains concentrated. Al is transforming industries and setting new standards for competitiveness and innovation. This insight is essential to help Nigeria position its businesses to adapt and thrive in the evolving digital landscape,” he stated.
Talking about the rationale for the study, Okon noted that despite growing interest in AI, there is limited local data on how Nigerian businesses are using these technologies, noting that the study filled that gap by providing evidence of current trends, challenges, and opportunities, helping to inform better decisions.
He explained that the insight was essential to help Nigeria position its businesses to adapt and thrive in the evolving digital landscape and to generate evidence that can guide inclusive policy development for Al usage in Nigeria.
“By understanding how businesses use Al, the challenges they face, and the gaps in data governance will inform evidence-based policies that drive inclusive development,” he emphasised.
With the study focused on Agriculture, Industry and Services sectors, the CSEA official noted that the firms considered under agriculture included both core firms involved in direct farming activity as well as those that offer agricultural services.
While the industrial sector included manufacturing, construction, and extractive subsectors, the services sector included subsectors such as ICT, finance, health, and other emerging technology-driven areas where Al is expected to achieve significant advancements.
The research found that the industrial sector had used AI for more than five years, while the service sector had a significant number of firms, even as the agricultural sector accounted for the least number of early users.
Covering 528 firms, the research found that large enterprises reported the highest proportion of firms that had been using Al tools for more than five years.
To reduce high implementation costs, the report recommended that the government should introduce targeted financial instruments such as Al innovation grants and tax incentives, while firms should explore cost-sharing models and pooled procurement to lower entry barriers.
“To tackle talent shortages, firms must commit to continuous staff training and in-house upskilling, while government and academia can support this by scaling Al-focused education, certifications, and industry-aligned training programmes.
“To address infrastructure deficits, investment is needed to expand broadband, data hosting capacity, and cloud infrastructure, while firms must strategically adopt solutions and digital tools that maximise existing infrastructure.
“To resolve regulatory uncertainty, policymakers should establish a clear Al governance framework supported by ethical guidelines, while firms must proactively align with evolving standards and build internal data responsibility protocols, “ the report suggested.
Other speakers at the event included: Senior System Analyst, Federal Ministry of Communications, Innovation and Digital Economy, Emmanuel Udoidiok; among several others.
Emmanuel Addeh
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