Harnessing AI for Nigeria's Digital Economic Growth

The digital economy of Nigeria added an eighteenth of 18.44 per cent to the GDP of the country in Q2 of the year 2023, compared to Q2 the previous year in 2022, which was 15.35 per cent as reported by the Nigerian Bureau of Statistics. Such exponential growth is an indicator of an important change: Nigeria is no longer the recipient of international technology but is pursuing a role as a regional leader in the digital revolution. The driving force behind this revolution is a super potent entity known as Artificial Intelligence (AI).

PwC predicts that in 2030, AI will add $15.7 trillion or more to the global economic output, whereby the African continent will earn its share in terms of $1.2 trillion allocation. As the most populous and economically largest country of the continent, Nigeria is at a critical point in defining the role of AI strategies that will define its future in the economic sector, in its governance, and in society. However, there are few tangible policies and initiatives available to release the real potential of the AI development in Nigeria.

With the world moving faster than ever towards an intelligent digital future, the question is obvious. Can Nigeria achieve constructive, situation-specific AI approaches that will drive economic diversification, efficiency in governance, and make Nigeria a technological juggernaut in Africa?

This blog post examines viable and evidence-based AI strategies that Nigeria needs to implement as it seeks to achieve a sustainable and inclusive, thriving, and globally competitive Nigerian digital economy.

 

1. Building a National AI Strategy Rooted in Nigeria’s Realities

In nations such as Egypt, Rwanda, and Kenya, formal AI roadmaps have already been implemented; the issue, however, is that Nigeria is at an early stage of creating a national policy on AI. The Federal Ministry of Communications, Innovation & Digital Economy declared its wish to create an AI policy in 2023, although development is sluggish.

An effective AI policy is one that should be contextual in Nigeria. It must focus on agriculture, health care, education, security and fintech where Nigeria needs it and where it should grow fast. For example:

- Agritech: 35 per cent of the Nigerian population is employed in the agricultural sector, and with the help of AI-driven precision farming, crop disease forecasting, and intelligent irrigation, these numbers could be multiplied by a significant margin.

- Healthcare: AI in diagnostics services and telemedicine can be used to overcome huge disparities in the health infrastructure existing in rural areas.

- Security: Surveillance and predictive analytics by artificial intelligence may help in increasing border security and crime prevention in high-security zones.

Nigeria needs to develop a local policy of AI based not on the imitation of Western experiences but on the principles of a public-private partnership, the formation of state-level innovation clusters, and open-source cooperation.

 

2. Talent Development for Nigeria’s Youth as a Resource

With 200-plus universities and polytechnics, Nigeria has a median age of 18.1 years, but the nation languishes in the face of a horrible AI talent shortage. A 2023 report by Google Research Africa states that just 5 per cent of the country's developers have a formal education in AI/ML, with fewer than 2 per cent taking up deep tech initiatives.

Nigeria needs to embrace the three-pronged approach to achieve sustainable AI talent development:

- Curriculum Reform: Hold AI, machine learning, and data science as part of the STEM curriculum at the higher education level.

- Upskilling Initiatives: We should collaborate with those services as Coursera, edX, and bootcamps, to introduce cheap AI certifications.

- Research Laboratories: Put up AI research centers in the leading universities, for example being the African Institute for Mathematical Sciences (AIMS).

Its focus on youthful innovation in technology investment in Nigeria would also guarantee the constant supply of data scientists, AI engineers, and policy architects who would make the future of AI in Nigeria possible.

 

3. The Framework: Infrastructure and Data: Building Block of AI Success

AI lives on computing power, data and connectivity. The digital infrastructure in Nigeria is, however, underdeveloped as the internet penetration level stood at 44.3 per cent as of early 2024 DataReportal.

The following are the strategic investments that are needed to unleash the growth of artificial intelligence:

- Nationwide Broadband Penetration: Fulfil the 2025 National Broadband Plan goal of 70% coverage.

- Smart Data Repositories: Create open government databases and anonymized industry data for AI model training.

- Cloud Ecosystem Development: Incentivize private cloud service providers to localize their infrastructure in Nigeria.

- 5G Rollout: Accelerate deployment of 5G networks in major economic zones to support AI use cases like autonomous vehicles and smart manufacturing.

Infrastructure should be the foundation of a smart economy in Nigeria.

 

4. Ethical AI and Inclusive Policy-Making

And without regulation, AI can increase inequality, invade privacy, and worsen the digital divide. Nigeria requires an AI regulatory framework that meets the need to innovate while protecting rights.

Major issues include:

- Data Governance: Ensure that the Nigerian Data Protection Act (NDPA) 2023, which applies to data driven by artificial intelligence, is robust and implemented.

- Bias & Fairness: Ensure socio-cultural and gender bias prevention through national standards for ethical algorithms in AI.

- Transparency: Require explainable AI in industries such as banking and health care, where systems that are not transparent can lead to life-changing outcomes.

- Local Involvement: Work with local communities, particularly those on the margins, in the co-design of AI tools to guarantee that they are culturally relevant as well as inclusive.

In Nigeria, an ethical and fair AI policy will help engender trust among citizens and guarantee long-term utilization.

 

5. Promoting AI Startups and Indigenous Innovation

The Global Startup Ecosystem Report 2024 states that Nigeria has over 3,300 startups, making it the biggest such ecosystem in Africa. But just 2 per cent of those are AI-based.

For AI to help further diversify Nigeria’s economy, the country needs to:

- Provide Fiscal Incentives: Tax incentives, subsidies and research and development credits to focus on AI start-ups and SMEs.

- Fund and create AI hubs: Regions such as the AI Hub in Kaduna or the YabaTech corridor in Lagos should be empowered with funds and infrastructure.

- Encourage Public Procurement of AI Tools: Public sector adoption of home-grown AI applications for identity management, traffic monitoring, or education can generate pull.

Homegrown and locally adapted technology innovation in Nigeria is more sustainable and economically relevant.

 

6. Global Collaboration with a Nigerian Lens

Nigeria’s AI ambition should not exist in isolation. It should join the conversations about AI development on the continent and the world, including:

- The AI Working Group of the African Union

- Collaboration with UNESCO´s AI for Development (AI4D)

- Partnerships with OpenAI, Google AI and IBM Research Africa

These partnerships must be cautiously entered into by Nigeria, ensuring data sovereignty, development of local capacity, and a structure for knowledge transfer for the long term. AI models developed abroad cannot just be imported into Nigeria without consideration for local contexts.

 

Conclusion

There is no straightforward trajectory towards a thriving Nigerian digital economy underpinned by AI. It takes continuous and concerted action in all of these areas: policy, education, infrastructure, innovation, and ethics.

To wrap up:

- Nigerian AI strategies and initiatives should thus be relevant to Nigeria and must be tailored towards national goals such as those in agriculture, health and security.

- While, of course, talent development around AI is crucial, Nigeria’s young population is an advantage, not a disadvantage.

- Having digital infrastructure and open data in place is a prerequisite for being ready for AI.

- This will lead to the responsible and beneficial adoption of AI, which is beneficial to all Nigerians.

- The promotion of home-grown, indigenous AI development in Nigeria can drive job growth and economic diversification.

- International cooperation is important, but it should be about Nigerian needs and autonomy.

The stakes couldn’t be higher. But so are the rewards. Nigeria must now take bold and data-driven steps, not just to catch up, but to leapfrog into a future of artificial intelligence development where a smart economy, Nigeria, is the one leading and owning the technology.

The future is not going to wait. It is already being written in code. Nigeria must now determine whether it wants to avoid attempting to help author that code or remain on the fringes.