NewsProbe News from Nigeria and Around the world
By Uche J. Udenka
#AfricaVisionAdvancementTrust
Artificial Intelligence (AI) is a field of computer science that focuses on creating systems capable of performing tasks that typically require human intelligence. This includes areas like reasoning, learning, perception, and decision-making. AI is not a single technology but a set of tools, techniques, and frameworks designed to make machines intelligent, from simple algorithms to complex systems capable of interpreting complex data, identifying patterns, and even making predictions.
There are two main types of AI: narrow AI and general AI. Narrow AI, or “weak AI,” is specialized for specific tasks and is what we commonly see today—for instance, voice assistants, recommendation engines on Netflix, and self-driving cars. These systems are trained to perform well in particular areas, yet they lack the flexibility and broad understanding of human intelligence. General AI, or “strong AI,” is a theoretical level of AI that would understand, learn, and apply intelligence across various tasks like a human. However, true general AI has not yet been achieved, and it remains a significant challenge in the field.
Artificial Intelligence (AI) has become an essential part of the modern world, transforming industries, reshaping economies, and impacting daily life in profound ways. From healthcare to transportation, AI-driven innovations are optimizing processes, enhancing productivity, and creating new opportunities.
In 2024, artificial intelligence (AI) became an economic powerhouse, generating substantial profits across industries as companies heavily invest in both generative AI and analytical AI. Spending in AI has reached significant levels across various sectors, with software and information services leading with $33 billion, followed by banking at $31.3 billion, and retail at $25 billion. These investments aim to streamline operations, personalize customer experiences, and automate processes, leading to reduced costs and enhanced customer engagement. For instance, banks use AI for tasks like personalized services, fraud detection, and algorithmic trading, while retailers apply it for demand forecasting and inventory management. Long-term projections indicate that AI could contribute as much as $19.9 trillion to the global economy by 2030, supporting approximately 3.5% of the world’s GDP. This impact is driven by AI’s potential to streamline processes, create new revenue streams, and generate broad economic benefits through its supply chain.
Nigeria is positioning itself as a key player in the global landscape of artificial intelligence (AI), drawing on its significant population, emerging tech ecosystem, and growing government and private sector interest in digital innovation. We should take an in-depth look at Nigeria’s role in today’s world of AI.
Artificial Intelligence (AI) is projected to significantly impact Nigeria’s economy, with estimates suggesting it could add around $15 billion to Nigeria’s GDP by 2030. This figure, highlighted by both Google and Nigerian government reports, stems from AI’s potential to transform various sectors including finance, agriculture, healthcare, and education. Nigeria is working on a National AI Strategy, with initiatives to improve digital skills and AI literacy. The government, supported by Google’s $2.8 billion investment, plans to train teachers and students in AI skills, aiming to create a large, AI-competent workforce over the next decade. By 2030, Nigeria could see increased job creation, particularly in technical fields, aligning with the country’s aim to address high unemployment rates among young people. While the AI contribution has promising potential, Nigeria faces challenges such as low internet access and limited AI-trained professionals. Efforts to expand digital infrastructure and increase STEM education are ongoing as part of the strategy to maximize AI’s economic impact.
Nigeria’s AI sector has seen reasonable growth in recent years, led by startups, universities, and tech hubs. Companies like Data Science Nigeria (DSN) and organizations like the AI Center for Excellence provide platforms for AI research, education, and talent development. DSN, for example, is known for its community outreach, training, and hackathons that aim to build local AI talent and address local needs. Tech hubs like Co-Creation Hub (CcHub) in Lagos also support AI startups and research by providing resources, mentorship, and funding to young tech innovators. Nigeria is home to a vast, youthful population eager to enter tech-related fields. Several initiatives are investing in talent development to harness this potential. For instance, AI Saturdays (AI6), a global initiative in many Nigerian cities, provides free AI education to individuals interested in the field. Nigerian universities, such as the University of Lagos and Covenant University, have also started to integrate AI and data science into their curricula, albeit at different levels of depth. Beyond local institutions, Nigerian students and professionals benefit from international online learning platforms like Coursera and edX, where they gain access to global-standard courses and certifications in AI. This accessibility has helped equip Nigerian talent to join the global AI community as developers, researchers, and data scientists.
The Nigerian government is increasingly recognizing the importance of AI and digital transformation. In 2019, Nigeria launched the National Digital Economy Policy and Strategy (2020-2030), which outlines a vision for the country’s digital development, with AI as a critical component. This policy aims to foster a conducive environment for innovation by investing in infrastructure, data privacy regulations, and digital literacy initiatives. While still at an early stage, the policy represents a growing awareness of the need for AI and digital policies that align with international standards. The National Information Technology Development Agency (NITDA) has also been active in fostering AI development. Through initiatives like the Nigeria AI Policy Draft and data protection regulations, NITDA works to build a framework for ethical and responsible AI use, though it still faces challenges with enforcement and scalability.
Nigerian AI startups and researchers are applying AI to address critical issues that align with local and regional needs. Some notable applications include:
Agriculture : AI-driven solutions are helping smallholder farmers increase crop yields and mitigate climate risks. For example, tools like precision agriculture apps use AI to analyze soil data, weather patterns, and other factors, allowing farmers to make informed decisions.
Healthcare: AI is being used in areas such as disease prediction, diagnostics, and telemedicine, particularly for malaria and other endemic diseases. AI4D Africa, a research initiative, funds AI projects in healthcare, supporting local researchers in tackling health challenges unique to Nigeria and Africa.
Financial Inclusion: Nigerian fintech startups leverage AI to increase financial access for underbanked populations. Through credit scoring algorithms and fraud detection, companies like Kuda and Carbon are using AI to help individuals access loans and other financial services more easily.
Natural Language Processing (NLP): Nigerian AI developers are advancing NLP for local languages, like Yoruba, Hausa, and Igbo. This work is essential in bridging the digital divide and fostering AI applications that can be widely accessible in a linguistically diverse country.
Nigeria’s AI landscape shows great promise, it also faces several challenges:
Data Infrastructure: Limited access to quality data and infrastructure restricts Nigeria’s potential for high-level AI development. Internet connectivity and power supply are inconsistent, which impacts data processing and storage capabilities.
Funding and Investment: Although Nigeria’s tech sector has seen increased venture capital interest, AI-specific funding remains limited. AI requires substantial investment in computing power, research, and talent development, and Nigerian startups often struggle to secure funding at par with their Western or Asian counterparts.
Brain Drain: Nigeria faces a challenge in retaining AI talent, as skilled professionals often seek opportunities abroad due to better pay, stability, and resources.
Ethics and Regulation: The rapid development of AI necessitates strong ethical frameworks and regulatory oversight. Nigeria’s regulatory environment is still maturing, and there’s a need for clearer policies that address AI ethics, bias, and data privacy to protect citizens.
Nigeria can collaborate with other African countries and international organizations to strengthen its AI capabilities. The country is a key member of the African Union’s AI initiatives, such as the African Union’s Digital Transformation Strategy, which encourages knowledge exchange across the continent. Nigeria should also collaborate with global entities like the World Bank and Google, which have sponsored programs to support AI education and entrepreneurship in the region. For instance, Google’s Launchpad Accelerator Africa program includes Nigerian startups, giving us access to international expertise, mentorship, and resources.
Nigeria’s place in the AI world is expected to expand as it continues to address its challenges and leverage its youthful talent. The growing interest from the government, private sector, and international partners sets a foundation for the country to advance in AI innovation. Furthermore, Nigeria’s diverse applications of AI hold a promise for solving some of the country’s most pressing socio-economic issues, potentially providing a model for other developing nations.
Nigeria is still developing its AI capabilities compared to more established players like the U.S., China, or Europe, it has significant potential to influence AI in Africa and beyond. By investing in education, building data infrastructure, and fostering local innovations, Nigeria can become a hub for AI that not only boosts its economy but also address unique regional challenges and contribute to the global AI landscape. The financial benefits of AI are vast and span across nearly every sector, with the potential to increase global GDP, improve efficiency, and open up new revenue streams.
Nigeria has traditionally depended on oil for the bulk of its revenue. However, fluctuations in global oil prices reveal the need for a more diversified economy. By investing in sectors like AI development, Solid Minerals, agriculture, technology, manufacturing, and renewable energy, Nigeria can create a more resilient economy and reduce dependency on oil. Strengthening industries like agribusiness and financial technology- fintech, where Nigeria has shown promise, can also improve its global competitiveness.
Overall, AI’s impact is undeniable, providing opportunities for growth and efficiency in nearly every sector. Its continued evolution will likely bring further innovations and challenges, making it crucial to balance progress with responsible usage. The world today stands on the brink of even greater AI advancements, shaping a future where AI could be as ubiquitous as electricity.
