Nigeria stands at a pivotal juncture in its economic evolution. With a burgeoning population exceeding 235 million and a median age of 18.1 years, the nation possesses a youthful demographic poised to drive innovation and economic growth. The convergence of Artificial Intelligence (AI) and expansive broadband infrastructure offers an unprecedented opportunity to redefine Nigeria’s economic landscape. This article delves into the transformative potential of AI and broadband in Nigeria, emphasising the urgency for prompt action to secure a leading position in the global digital economy.
The current digital landscape needs attention. As of January 2025, Nigeria’s broadband penetration reached 45.61 percent, translating to approximately 98.8 million subscriptions. Concurrently, the number of internet users stood at 107 million, representing 45.4 percent of the population. These figures underscore the nation’s progress in digital connectivity yet highlight the vast potential for further growth, especially in rural areas where internet access remains limited.
The National Broadband Plan (NBP) 2020–2025 aimed to achieve 70 percent broadband penetration by 2025. However, challenges such as infrastructure deficits and high costs have impeded progress. To bridge the broadband penetration gap, the federal government launched the National Broadband Alliance for Nigeria (NBAN), targeting a broadband penetration increase from 44 percent in December 2024 to 70% by 2025, while ensuring minimum data speeds of 25 Mbps in urban areas and 10 Mbps in rural regions.
AI adoption: a nascent yet promising frontier for our region. AI adoption in Nigeria is gaining momentum. Between 2022 and early 2024, the number of AI-focused startups surged from approximately 35 to over 80, primarily concentrated in Lagos, Abuja, and Port Harcourt. These startups have collectively raised over $120 million in funding during this period, signalling growing investor confidence in Nigeria’s AI potential.
A global survey by Ipsos in collaboration with Google revealed that 70% of Nigeria’s online population reported using generative AI tools, far exceeding the global average of 48%. This high adoption rate indicates a strong appetite for AI-driven solutions among Nigerians.
The Nigerian government’s proactive stance is evident in the National Artificial Intelligence Strategy (NAIS), which outlines a vision for harnessing AI to foster economic growth, promote social development, and advance technological leadership. The strategy emphasises the integration of AI across sectors such as agriculture, healthcare, and finance, highlighting AI’s potential to drive sectoral transformation and improve data-driven decision-making.
The economic imperative of AI and broadband integration cannot be overemphasised. Integrating AI with robust broadband infrastructure can catalyse economic growth. A study indicates that a 10% increase in broadband penetration can boost GDP growth by approximately 1.38% in low- and middle-income countries. This underscores the symbiotic relationship between digital connectivity and economic development.
In agriculture, AI-powered tools can optimise crop yields, monitor soil health, and predict weather patterns, thereby enhancing food security. In healthcare, AI can facilitate early disease detection, streamline patient records, and improve diagnostic accuracy. The financial sector can leverage AI for fraud detection, customer service automation, and personalised financial services.
Despite the promising outlook, several systemic and structural challenges continue to impede the full realisation of AI and broadband integration in Nigeria. One of the most pressing obstacles is the inadequate broadband infrastructure, particularly in rural and underserved regions. Although broadband internet subscriptions reached 101.8 million as of March 2025, marking a modest increase of 2.9 million users from the previous month, this growth remains unevenly distributed across the country. The lack of last-mile connectivity, ageing telecommunications equipment, and power supply inconsistencies make it difficult to extend high-speed internet access beyond major urban centres. Without significant infrastructure investments, millions of Nigerians will remain excluded from the digital economy.
Affordability also constitutes a critical barrier. While the National Broadband Plan (NBP 2020–2025) aspires to reduce the cost of 1GB of data to no more than N390, current data pricing remains unaffordable for low-income households, particularly those in rural areas. According to Alliance for Affordable Internet (A4AI), affordable internet access is defined as 1GB of mobile data costing no more than 2 percent of an individual’s monthly income. For many Nigerians earning below the minimum wage, even this threshold proves burdensome. Furthermore, the cost of acquiring AI-powered devices, maintaining stable electricity to run them, and purchasing software licences compounds the economic challenge for small businesses and individuals alike.
A third significant hurdle is the lack of digital literacy. While younger Nigerians are increasingly exposed to mobile technologies and online platforms, a considerable portion of the population—especially those in the informal sector and older age brackets—remains digitally marginalised. According to a 2024 report by Agora Policy, only 43% of Nigerians had regular internet access, and even fewer possessed the technical knowledge to engage meaningfully with AI applications. Digital skills gaps undermine the ability of individuals and organisations to adopt and innovate with emerging technologies, limiting the broader socio-economic impact of AI initiatives.
Regulatory ambiguity further complicates the digital transformation agenda. Nigeria currently lacks a robust and enforceable framework to govern AI deployment, data privacy, and cybersecurity. While the draft National AI Policy provides a foundational roadmap, it is still under development and has yet to be implemented on a large scale. In the interim, the absence of enforceable standards and ethical guidelines creates a precarious environment where personal data may be misused, algorithmic biases may go unchecked, and cybersecurity threats may proliferate. This regulatory vacuum not only exposes citizens and institutions to harm but also discourages foreign investment and hinders international collaborations in AI research and development.
Overcoming these challenges requires a multi-pronged approach that combines infrastructure expansion, affordability reforms, nationwide digital literacy initiatives, and timely enactment of clear, enforceable policies. Until these foundational issues are addressed, the transformative potential of AI and broadband technologies in Nigeria will remain largely aspirational rather than fully realised.
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Here are strategic recommendations for leadership. To fully harness the transformative potential of artificial intelligence (AI) and broadband in Nigeria, a comprehensive strategy grounded in infrastructure, policy, human capital development, collaboration, and innovation is required. The country’s digital ambitions must be matched by deliberate and sustained efforts to address long-standing systemic limitations and create an enabling environment for technology to thrive.
One of the most urgent priorities is infrastructure expansion. Nigeria must accelerate the deployment of broadband infrastructure across the country, with a particular focus on underserved rural and semi-urban regions. The current urban-centric deployment model has left large swathes of the population digitally disconnected, reinforcing economic inequality and stifling grassroots innovation. Encouragingly, there are plans to establish a Digital National Broadband Fund aimed at financing the rollout of infrastructure, including approximately 95,000 kilometres of middle-mile fibre optic cable in the near to medium term. This investment must be executed efficiently, with performance metrics, transparency, and public-private oversight, to ensure real and measurable improvements in connectivity.
Equally important is the development and implementation of robust policy frameworks. Nigeria must articulate clear legal and ethical guidelines to govern the deployment of AI technologies. These frameworks should address critical issues such as AI ethics, data protection, intellectual property rights, algorithmic transparency, and cybersecurity. Without these safeguards, the proliferation of AI could expose citizens to surveillance, discrimination, or exploitation, undermining public trust. The draft National AI Policy is a step in the right direction, but it must be finalised and operationalised swiftly to provide regulatory clarity and attract responsible AI investments.
In parallel, capacity building must be prioritised. Nationwide digital literacy programs are essential to prepare Nigeria’s workforce for an AI-driven economy. These programmes should target schools, universities, vocational centres, and informal sectors, ensuring that digital and AI competencies are not limited to a privileged few. Incorporating coding, data science, and critical thinking into national curricula, alongside programmes that retrain professionals in traditional sectors, will help democratise access to digital opportunity and reduce the risk of widespread technological unemployment.
Fostering public-private partnerships (PPPs) is another key strategy. The Nigerian government should actively seek collaborations with local startups, multinational tech companies, universities, and civil society organisations to co-create AI solutions, co-finance broadband infrastructure, and develop innovation ecosystems. These partnerships can help reduce costs, accelerate technology diffusion, and stimulate knowledge transfer, creating a more inclusive digital economy. Incentivising private sector participation through tax credits, streamlined regulations, and innovation hubs will further catalyse engagement.
Finally, Nigeria must deepen its commitment to research and development (R&D). Investing in AI-focused R&D will enable the country to build indigenous, context-specific solutions for healthcare, agriculture, finance, education, and governance. Establishing AI research centres within universities and funding interdisciplinary innovation clusters will help retain local talent, reduce dependence on foreign technology, and position Nigeria as a leader in home-grown digital solutions. Collaboration with African regional institutions and global partners can also expand the scope and scale of innovation.
Taken together, these strategic actions will enable Nigeria not only to catch up with global digital trends but also to lead within Africa and beyond. The synergy between infrastructure, policy, skills, partnerships, and innovation is essential for Nigeria to unlock the full value of AI and broadband for inclusive economic transformation.
The urgency of now speaks volumes. The global digital economy is evolving rapidly, and therefore the urgency of now! Countries that act swiftly to integrate AI and expand broadband infrastructure will secure competitive advantages, attract foreign investment, and stimulate job creation. Delayed action risks relegating Nigeria to the periphery of technological advancement, with missed opportunities for economic diversification and growth.
In conclusion, Nigeria’s journey towards a digitally empowered economy hinges on the strategic integration of AI and broadband infrastructure. By addressing existing challenges and implementing targeted strategies, the nation can unlock new economic frontiers, enhance service delivery, and improve the quality of life for its citizens. The time to act is now.
David Olufemi, S-IEEE, F-IMC, M-AIS, Academic Member ISACA, Member-ISC2, and F-NIPES, is a seasoned expert with over 13 years of experience in cloud and next-generation network technologies. His insights and contributions have been instrumental in shaping Nigeria’s digital transformation landscape.
