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Funding Gap Threatens Nigeria’s AI Growth Despite Strong Implementation – Report

By: Adamu Garba

November 6, 2025

3 minute read

A new report warns that Nigeria’s AI growth could stall without stronger domestic funding, despite global investments and successful AI deployments across key sectors like health, education, and agriculture.

Nigeria’s artificial intelligence (AI) ecosystem is making measurable progress, but a new report warns that insufficient domestic funding could threaten long-term growth.

While the country has become a regional leader in AI policy and implementation, the report highlights that funding remains the weakest link, noting: “The strategy lacks explicit budget lines or projections, relying on external partners.”

The report cautions that without a defined local financing framework, Nigeria’s momentum could stall, even as it continues to attract international support.

Nigeria’s AI Investments: Global Confidence, Local Gaps

Nigeria’s AI initiatives have benefited significantly from international partnerships. In 2024 alone, the UNDP, UNESCO, Meta, Google, and Microsoft contributed US$3.5 million to the country’s initial AI rollout.

Additional major investments include:

  • Rack Centre’s US$120 million data centre
  • OADC’s US$240 million hyperscale facility
  • Google’s ₦100 million AI Fund
  • Microsoft’s US$1 million local investment

These projects underscore the global confidence in Nigeria’s AI potential, particularly in infrastructure and innovation.

Public Engagement and Capacity Building

Public participation has been central to Nigeria’s AI development strategy. In April 2024, a four-day national workshop brought together stakeholders from academia, civil society, and the private sector to refine the country’s AI roadmap.

UNESCO followed up with training programs for civil servants in early 2025, while states like Edo, Sokoto, and Imo have hosted local AI workshops to strengthen community-level understanding and adoption.

AI Deployments and Local Innovations

Nigeria’s AI ecosystem is already delivering tangible results. This year, the country launched N-ATLAS, a multilingual language model supporting Yoruba, Hausa, and Igbo, advancing local-language inclusivity in technology.

Additionally, the government, in partnership with the Gates Foundation, established an AI Scaling Hub to expand applications in health, education, and agriculture.

AI tools are also being deployed in social welfare programs to map urban poverty, providing data-driven insights for inclusive policymaking.

Regional Context: Senegal Leads in Funding

Across West Africa, Senegal remains the only country with a fully costed AI strategy, allocating US$46 million for research and training. Other countries, including Nigeria, still lack dedicated budgetary frameworks, limiting scalability and sustainability.

While Nigeria and Ghana lead in AI adoption and foreign-backed investment, both rely heavily on external funding. Ghana’s 10-year AI strategy, supported by Google and Japan-backed AI hubs, mirrors Nigeria’s multi-sectoral approach, focusing on health, finance, and agriculture.

Meanwhile, Côte d’Ivoire and Benin have developed strategic frameworks but lack enforcement capacity, and Burkina Faso remains at the drafting stage.

Recommendations: From Strategy to Sustainable Execution

The report outlines four key actions African nations, including Nigeria, must prioritize to achieve sustainable AI growth:

  1. Enact enforceable AI legislation to ensure algorithmic accountability, ethical standards, and judicial literacy.
  2. Invest in local talent and infrastructure, expanding data diversity and regional collaboration.
  3. Establish multi-year AI budgets and strengthen public–private partnerships to ensure consistent funding.
  4. Harmonize regional data standards and protect intellectual property to enhance Africa’s global competitiveness.

Outlook

Nigeria’s progress demonstrates what strong partnerships and policy innovation can achieve in AI development. However, experts warn that sustained domestic funding and legal frameworks are essential for long-term success.

Without these, Nigeria risks becoming an innovation hub without economic autonomy, dependent on foreign grants for technological advancement.

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