Report Overview

Increasing government support and national AI strategies, expanding digital infrastructure and internet penetration, and rising adoption of AI across key sectors are expected to drive Nigeria Artificial Intelligence (AI) Market during the forecast period between 2025 and 2031.

Nigeria Artificial Intelligence (AI) Market – Industry Trends & Forecast Report, 2031

Nigeria Artificial Intelligence (AI) Market size was estimated at USD 767.02 million in 2024. During the forecast period between 2025 and 2031, Nigeria Artificial Intelligence (AI) Market size is projected to grow at a CAGR of 28.07% reaching a value of USD 4,333.11 million by 2031. Prominent drivers of Nigeria AI market include growing government initiatives, rising private sector innovation, and a tech-savvy population. The launch of the National Artificial Intelligence Strategy (NAIS) in 2024 marked a significant step toward building foundational AI infrastructure, promoting ethical development, and driving adoption across key sectors such as healthcare, agriculture, finance, and education. Nigeria has rapidly emerged as a regional AI leader, with AI-focused startups more than doubling between 2022 and 2024 and attracting over USD 120 million in funding. In the financial sector, AI is being used for fraud detection, credit scoring, and customer service, enhancing financial inclusion. Healthcare applications include AI-driven diagnostics, patient monitoring, and medical logistics. The education sector benefits from personalized learning platforms and AI-powered local content, while agriculture is adopting AI for crop disease detection, precision farming, and weather forecasting. Additionally, mobile AI solutions are gaining traction amid rising smartphone usage, enabling innovations in traffic prediction, language processing, and digital payments. Companies such as PayStack, LifeBank, uLesson, FarmCrowdy, and Helium Health are leading successful AI deployments, underscoring Nigeria’s growing role in the global AI landscape.

Artificial Intelligence (AI) – Overview

Artificial Intelligence (AI) refers to the simulation of human intelligence in machines designed to think, learn, and make decisions. It enables computers to perform tasks such as problem-solving, pattern recognition, and language understanding, often improving over time through data-driven algorithms and machine learning techniques.

Nigeria Artificial Intelligence (AI) Market

Growth Drivers

Increasing Government Support and National AI Strategies

The government is playing a pivotal role in accelerating the growth of Nigeria Artificial Intelligence (AI) Market through strong institutional support and comprehensive national strategies. A key initiative is the launch of the Nigeria AI Scaling Hub by the Federal Ministry of Communications, Innovation & Digital Economy in partnership with the Gates Foundation, aimed at promoting responsible AI adoption across sectors such as healthcare, agriculture, and education. Further reinforcing this commitment, a NGN 100 million AI startup fund was introduced in partnership with Google to support ten innovative Nigerian startups developing AI-driven solutions, offering them financial backing, access to advanced tools, expert mentorship, and global networks. These efforts, coordinated by the National Centre for Artificial Intelligence and Robotics (NCAIR), reflect the administration’s broader push to cultivate a thriving AI ecosystem. Additionally, the approval of the National AI Trust by the Federal Executive Council and the drafting of a National Artificial Intelligence Strategy underscore the government’s intent to establish a robust policy and regulatory framework for AI development. Capacity-building initiatives, such as UNESCO’s AI training for civil servants, further align with Nigeria’s National Digital Economy Policy and Strategy, equipping public sector professionals with essential digital competencies. Collectively, these initiatives highlight Nigeria’s strategic focus on fostering AI innovation through increasing government support and structured national policies, positioning the country as a leading hub for emerging technologies in Africa.

Challenges

Shortage of Skilled AI Professionals

The growing shortage of skilled AI professionals in the country poses a significant challenge to the growth of Nigeria Artificial Intelligence (AI) Market. Despite increasing government support and funding, the lack of adequately trained talent hinders the implementation and scaling of AI solutions across key sectors. This talent gap limits innovation, delays project execution, and reduces the country’s competitiveness in the global AI landscape, ultimately restraining market growth.

Impact of Escalating Geopolitical Tensions on Nigeria Artificial Intelligence (AI) Market

Escalating geopolitical tensions can significantly impact Nigeria Artificial Intelligence (AI) Market. Rising global uncertainties may disrupt international collaborations, restrict access to advanced technologies, and hinder foreign investments crucial for AI development. Sanctions, trade restrictions, or diplomatic strains with key technology partners could limit the import of AI-related hardware, software, and research support. Additionally, geopolitical instability may shift government priorities away from innovation toward national security and crisis management, slowing policy execution and funding allocation. These factors collectively pose challenges to the sustained growth of Nigeria’s AI ecosystem, potentially delaying the country’s progress in becoming a regional leader in AI innovation.

Nigeria Artificial Intelligence (AI) Market

Segmental Coverage

Nigeria Artificial Intelligence (AI) Market – By Component

Based on component, Nigeria Artificial Intelligence (AI) Market is divided into Software, Hardware, and Services segments. The software segment holds the highest share in Nigeria Artificial Intelligence (AI) Market by component. It is driven by advancements in data storage, computing power, and parallel processing, which enable the delivery of sophisticated AI services. The segment’s ability to extract valuable data, generate real-time insights, and support strategic decision-making has further solidified its leading position. AI software solutions typically include libraries and tools for developing and deploying applications involving video analytics, inference, and hardware integration. As businesses increasingly rely on visual data analysis for actionable insights, the demand for AI software is expected to grow steadily in the coming years.

Nigeria Artificial Intelligence (AI) Market – By Deployment Mode

On the basis of deployment mode, Nigeria Artificial Intelligence (AI) Market is split into Cloud and On-premises segments.

Nigeria Artificial Intelligence (AI) Market – By Technology

Nigeria Artificial Intelligence (AI) Market by technology is divided into Machine Learning, Natural Language Processing, Computer Vision, and Deep Learning segments. The deep learning segment holds the highest share in Nigeria Artificial Intelligence (AI) Market by technology. It is largely due to its ability to enable machines to learn from large volumes of data and enhance performance over time. Deep learning is particularly effective in handling unstructured data such as images, video, and language, making it essential for advanced applications like autonomous vehicles, where it supports object detection, road mapping, and decision-making. Its growing use in complex tasks like speech, text, and content recognition has elevated its importance. These capabilities make deep learning a key driver of market growth and an attractive area for investment.

Nigeria Artificial Intelligence (AI) Market – By End User

Based on end user, Nigeria Artificial Intelligence (AI) Market is segmented into Healthcare, Agriculture, BFSI, Retail, Education, and Government. The BFSI segment holds the highest share in Nigeria Artificial Intelligence (AI) Market by end user. The dominance is driven by the sector’s rapid adoption of AI to enhance operational efficiency and decision-making. Financial institutions are leveraging machine learning models to improve credit scoring and underwriting by accurately analyzing large volumes of customer data, thereby minimizing default risks. Additionally, banks are integrating AI to deliver personalized services, enhance customer experience, and detect fraudulent activities in real time. By identifying unusual patterns in transaction data, AI significantly strengthens fraud prevention and security, making it an essential tool for modernizing the financial services landscape.

Competitive Landscape

Major players operating in Nigeria Artificial Intelligence (AI) Market include Data Science Nigeria (DSN), Co-Creation Hub (Cc-HUB), National Centre for Artificial Intelligence and Robotics (NCAIR), GMind AI, Nomba (formerly Kudi.ai), Curacel, Awarri, Intelia, RxAll, Jamborow, MyCover.ai, Zeeh Africa, CDIAL (Centre for Digitization of Indigenous African Languages), Terragon Group, and Andela. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2025 - Microsoft announced a USD 1 million investment to train one million Nigerians in artificial intelligence by 2026. Aligned with Nigeria’s draft National AI Strategy, the initiative aims to strengthen the country’s digital economy by equipping youth, women, and public sector leaders with critical AI and digital skills. Through partnerships with the Nigerian government and organizations such as Tech4Dev and MTN Foundation, Microsoft continues to support workforce development, innovation, and inclusive economic growth, reinforcing its long-term commitment to Nigeria’s digital transformation.

• In March 2025 - Airtel Africa launched an AI-powered Spam Alert Service in Nigeria, marking a first in the African telecom sector. The service, automatically activated for all Airtel users at no cost, provides real-time alerts for suspected spam SMS without requiring app downloads. Using advanced AI, it scans over 250 parameters to detect spam and malicious links, offering dual-layer protection at the network and IT levels. Initially launched in Nigeria—Airtel’s largest market—the service will expand to other operating countries, reinforcing the company’s commitment to tech-driven, customer-centric solutions across Africa.

• In February 2024 - Nigerian microfinance bank Carbon launched a new business banking platform following its acquisition of fintech firm Vella Finance through parent company One Credit Limited. Vella, known for AI-driven cross-border payment and financial tools for SMEs, will now integrate its technology into Carbon Business. The platform offers features such as sub-accounts, income automation, low-cost loans, and AI-powered transaction analysis to support smarter financial decisions.

Scope of the Report

By Component

• Software

• Hardware

• Services

By Deployment Mode

• Cloud

• On-premises

By Technology

• Machine Learning

• Natural Language Processing

• Computer Vision

• Deep Learning

By End User

• Healthcare

• Agriculture

• BFSI (Banking, Financial Services, and Insurance)

• Retail

• Education

• Government