Microsoft’s new research paper provides a roadmap for AI advancement in Nigeria

While developing economies like Nigeria face significant challenges in fully leveraging the advantages of AI, implementing the technology across key sectors could help address some of these issues and significantly reduce inequality. This is one of the key findings from Microsoft’s new white paper, AI in Nigeria, commissioned by Microsoft and conducted by PwC and Lagos Business School. The findings were unveiled today during Microsoft AI Skills Week in Lagos.

The five-day event was designed to equip customers, business leaders, developers and end users with the knowledge and hands-on experience needed to drive AI adoption. It combined self-paced learning, live sessions, and interactive workshops to provide a comprehensive learning experience.

During the event, experts brought critical insights from the white paper to life, unpacking a more data-driven approach to accelerating AI transformation.

“Although AI is still an emerging field with early-stage applications in Nigeria, global advancements and the growing recognition of AI’s transformative power have catalysed a shift in mindset across the country. Entrepreneurs, researchers, and policymakers are now exploring AI to address local needs and drive growth,” says Ola Williams, Managing Director, Microsoft Nigeria and Ghana.

Government and educational institutions have started fostering innovation and creating an environment for AI research and development. Programmes like the Nigeria Artificial Intelligence Research Scheme (NAIRS) and the National Centre for Artificial Intelligence and Robotics (NCAIR) support AI projects. Recently, the Nigerian government also published its National AI Strategy, aiming to leverage AI for economic growth, social development, and technological leadership.

From finance to e-commerce, agriculture, and healthcare, AI offers numerous opportunities for progress. This is evidenced by greater adoption of the technology across sectors, as well as increased AI startup funding. Nigerian banks use chatbots for services like account inquiries and customer complaints. In e-commerce, platforms such as Bumpa use AI as business coaches, and in agriculture, services like Kitovu employ AI for agronomic advice and personalised crop analysis. This integration of AI is driving efficiency and bolstering Nigeria’s digital economy.

“We stand at a pivotal moment where AI is revolutionising industries and transforming economies. Countries are increasingly adopting AI technologies across critical sectors like healthcare, finance, and education. While AI’s benefits are immense, balancing risks and rewards is crucial. By building trust and robust governance frameworks, Nigeria can overcome challenges and harness AI’s potential, unlocking significant growth and driving transformation across businesses and society,” comments Olufemi Osinubi, Partner and WMA Consulting Risk Services Leader, PwC Nigeria.

Drawing on AI to overcome key obstacles

The progress of AI in Nigeria faces several challenges. While AI has the potential to transform many aspects of daily life, the country must overcome obstacles related to skills, funding, regulation, data preparedness, and public perception to fully enhance its AI capabilities.

Lack of infrastructure and skilled workers are significant barriers to AI advancement. In Nigeria, there is a shortage of people with AI skills, and many of these professionals are leaving the country, causing a gap in expertise and delaying AI adoption. The complexity of learning AI concepts can also discourage beginners. Over and above this, organisations are often hindered by a lack of understanding among business leaders of AI, and its related risks and ethical frameworks. However, initiatives like the Federal Ministry of Communications, Innovation and Digital Economy’s 3MTT (Three Million Technical Talent) programme and Microsoft’s AI Skills Navigator are gradually training the next generation of AI talent to fill this gap in skills and understanding.

Furthermore, integrating AI into education can significantly speed up the adoption of AI skills. Intelligent tutoring systems and personalised learning tools have the potential to bridge educational equity gaps. For instance, in Uganda, AI-powered platforms provide free legal education and services to rural communities, while in India, students using AI-based personalised learning tools have achieved higher scores in Hindi and math.

While some argue Nigeria should not prioritise AI adoption due to more pressing challenges, the paper points out that this perspective overlooks AI’s potential to address these very issues. Indeed, by bridging the gap in education and AI skills, organisations across the country can unlock AI’s full potential and drive significant progress.

“Our commitment at Lagos Business School is to partner with government and industry not only in defining AI strategies and use cases, but also in building the analytical capabilities, ethical mindsets, and leadership competencies required to sustain Africa’s digital renaissance,” says Olayinka David-West, Dean and Professor of Information Systems, Lagos Business School.

Another obstacle to AI transformation is the widespread fear of job replacement, causing employees to resist AI adoption. However, research suggests that AI will likely complement human work in many cases. Supporting this, a CEO survey found that only 13 percent of sub-Saharan organisations adopting AI reported workforce reductions. Furthermore, a workforce survey revealed that 70 percent of Nigerian respondents expect GenAI to improve their work efficiency, while 88 percent believe AI tools will help develop new skills, creativity, and better work quality.

“By bringing together stakeholders across the country to identify the specific challenges to AI adoption in Nigeria and providing actionable recommendations for progress, we believe this white paper will serve as a powerful blueprint for AI advancement in Nigeria. Together, we can ensure that Nigeria not only keeps pace with the AI era but also emerges as a formidable digital powerhouse,” concludes Williams.