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Writer's pictureAdekoya Favour Tosin

Is Nigeria Ready for AI? Analyzing the Challenges and Opportunities in AI Development



The global GDP is projected to receive a $15 trillion boost from artificial intelligence (AI) by 2030, leading to a 25% growth in countries worldwide (Source: Techcabal). However, Nigeria is yet to establish a comprehensive policy. Despite having a vibrant tech ecosystem with over 200 startups, Nigeria encounters significant challenges in AI development, primarily due to infrastructure gaps. The key requirements for AI advancement include computing power, data, and a skilled workforce, which Nigeria needs to enhance. As AI continues to revolutionize global industries, the critical questions persist: Can Nigeria surmount its challenges, and what opportunities does AI present for its future?

 

The State of AI in Nigeria

Nigeria is making significant strides in advancing its AI capabilities, with concerted efforts from the government and private sector to establish a robust AI ecosystem. The National Information Technology Development Agency (NITDA) is leading the development of a national AI policy aimed at harnessing AI for sustainable national development. This policy is designed to address local needs while adhering to global best practices, encompassing objectives such as job creation, social inclusion, sustainable healthcare, agriculture, and education development. Emphasis is also placed on ethical considerations, transparency, and accountability to mitigate risks such as algorithmic bias and data privacy concerns.  Initiatives like the Nigeria Artificial Intelligence Research Scheme (NAIRS) provide financial support to AI researchers and startups, fostering collaboration and innovation. The private sector is equally instrumental in integrating AI solutions into their operations to drive innovation in sectors such as finance and logistics. Partnerships between private companies and academic institutions are actively developing AI-focused curricula to bridge Nigeria's skills gap and ensure that the workforce is equipped for AI-driven industries.


Challenges Facing AI Development in Nigeria


Infrastructure Deficiencies: Nigeria's AI research and deployment are significantly hindered by infrastructure deficiencies, particularly in internet connectivity and power supply. As of 2023, only 60% of the population has access to electricity, leading to frequent outages that disrupt data centers and research facilities crucial for AI development. Additionally, Nigeria's internet penetration rate stands at approximately 48%, limiting access to high-speed connections necessary for AI training, real-time data processing, and cloud computing. These infrastructure challenges impede global collaboration for AI research and hinder access to essential resources. In critical sectors such as healthcare and agriculture, inconsistent power and internet services obstruct the implementation of AI solutions, leading to unreliable data flow. Moreover, these limitations discourage both local and foreign investment in Nigeria's AI sector, further stifling its growth. Ultimately, inadequate infrastructure contributes to brain drain, as skilled AI professionals leave for countries with better technological environments.

 

Shortage of AI Skills and Expertise in Nigeria: Nigeria faces a significant shortage of AI skills and expertise, with about 1,000 graduates in AI-related fields annually from its 262 universities, compared to AI graduates in India and the U.S. Outdated curricula and limited funding for qualified AI professors further widen the skills gap, leaving students underprepared for industry demands. To address this, the government’s National AI Strategy aims to equip 70% of youth (ages 16-35) with AI skills, focusing on updated curricula, faculty training, and practical experience through industry partnerships, ensuring Nigeria builds a competitive AI workforce.

 

AI Policy: Nigeria's National Artificial Intelligence Policy (NAIP) seeks to establish a robust and ethical AI environment. However, challenges such as inadequate infrastructure, regulatory ambiguity, and the absence of clear AI-specific guidelines are impeding its implementation. These gaps are causing uncertainty for businesses and developers, thus hindering the pace of AI innovation. To tackle these issues, Nigerian authorities must ensure that AI policies safeguard human rights and adhere to best practices such as algorithmic accountability, data protection, and transparent machine learning-based decision-making. The policy should also address critical challenges like food security and healthcare accessibility by leveraging AI to provide solutions. Given Nigeria's significant youth population, a strategic AI approach is essential to mitigate potential job displacement and involve the youth in the evolving AI economy. Concerns such as algorithmic bias, privacy erosion, and opacity in AI deployment need to be given high priority. A human rights-focused AI strategy can promote an inclusive, ethical AI ecosystem in Nigeria, while also aligning with the nation’s socioeconomic aspirations.

 

Opportunities in AI

AI presents transformative opportunities across various sectors in Nigeria, offering significant economic growth and development potential. In financial services, AI is reshaping banking with algorithms that provide personalized services, enhance fraud detection, and improve security. This is crucial in tackling Nigeria’s financial fraud challenges. The healthcare sector stands to benefit from AI-driven diagnostic tools tailored to local diseases and treatment methods, improving patient care and bridging gaps, particularly in underserved areas. Education is also seeing advances through AI-powered platforms that offer customized learning experiences and help close learning gaps for Nigerian students. In agriculture, AI optimizes farming techniques, predicts weather patterns, and manages resources efficiently, which is critical for a country where agriculture is a significant livelihood. Government operations can be improved through AI, leading to better public service delivery and enhancing election integrity. Security can also be bolstered through AI technologies, addressing Nigeria’s unique safety challenges. Economically, AI has the potential to contribute significantly to Nigeria’s growth. According to PwC, AI could add up to $15.7 trillion to the global economy by 2030, with Africa projected to gain $234 billion. Nigeria, which attracted 25% of African tech startup funding in 2021, is well-positioned to leverage AI for economic diversification and innovation.

 

Conclusion

Nigeria faces challenges in AI development due to insufficient infrastructure, uncertain regulations, and the absence of ethical guidelines. However, AI offers extensive opportunities in finance, healthcare, education, and agriculture. By 2030, AI is expected to significantly contribute to Africa's GDP, presenting a substantial opportunity for Nigeria's expanding tech sector. To capitalize on this potential, it is imperative to implement a comprehensive AI policy that prioritizes human rights and ethical standards, laying the foundation for a sustainable and innovative AI ecosystem.

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