Nigeria’s AI Growth Faces Funding Crisis Despite Strong Implementation, Report Warns
Nigeria has emerged as West Africa’s frontrunner in artificial intelligence (AI) adoption and investment, but its ambitions may be derailed by a widening funding gap. According to the State of AI Policy in Africa 2025 report, while Nigeria leads in AI implementation, the country’s National Artificial Intelligence Strategy (NAIS) still lacks dedicated funding and statutory backing—posing a major threat to sustained progress.
The report highlights that Nigeria has made strong strides in deploying AI through local language models and scaling hubs. However, the absence of a clear budget line or long-term financial plan means the country relies heavily on external partners. “Funding remains the weakest area,” the report notes. “The strategy lacks explicit budget lines or projections, relying on external partners.” This shortfall could stall the country’s momentum despite its early leadership in AI policy development across the region.
International partners have been instrumental in Nigeria’s AI journey. In 2024, organizations like UNDP, UNESCO, Meta, Google, and Microsoft collectively invested $3.5 million to kick-start national AI programs. The private sector followed suit with major infrastructure projects such as Rack Centre’s $120 million data center and OADC’s $240 million hyperscale facility. Google’s ₦100 million AI Fund and Microsoft’s $1 million local investment reflect global confidence in Nigeria’s digital potential.
Public participation has also driven Nigeria’s AI agenda. Stakeholders from academia, industry, and civil society convened at a national workshop in 2024 to shape the country’s AI roadmap. UNESCO further supported civil service training in early 2025, while states like Edo, Sokoto, and Imo launched local AI workshops to deepen community-level understanding. The launch of N-ATLAS, a multilingual model supporting Yoruba, Hausa, and Igbo, and the establishment of an AI Scaling Hub in partnership with the Gates Foundation, mark tangible progress in health, education, and agriculture applications.
Despite these gains, the broader West African landscape mirrors Nigeria’s funding challenges. Senegal remains the only country in the region with a fully costed AI strategy, allocating $46 million for research and training. Ghana, Nigeria, Côte d’Ivoire, and Benin have all made headway in policy and implementation but struggle with consistent financing and regulation. The report urges African nations to establish enforceable AI laws, strengthen local talent pipelines, and create long-term funding mechanisms to move from ambition to impact.
source: nairametrics