Nigeria’s artificial intelligence (AI) ecosystem is rapidly expanding, now hosting over 120 active startups across sectors like healthtech, fintech, agritech, and language technology. According to the AI Outlook 2026: Shifts, Trends & Predictions report by AI CoLab Africa and AI in Nigeria, 2025 marked a pivotal year for local innovation, yet persistent funding gaps and infrastructure limitations threaten to slow this momentum.
The report, which surveyed 504 professionals and interviewed dozens of ecosystem leaders, paints a picture of a nation balancing cutting-edge innovation with structural challenges. While the launch of the Nigeria National AI Strategy (NAIS) in 2024 and the establishment of the Nigeria National AI Trust in 2025 highlight government commitment, experts warn that fragmented adoption and limited resources remain key hurdles.
Despite these obstacles, homegrown innovations are making waves. Startups like Awarri are developing Nigeria’s first multilingual large language model, while Ubenwa Health uses AI to analyze infant cries for early neurological diagnosis. In autonomous systems, Terra Industries builds AI-powered drones for export across Africa, and BetaLife Health leverages AI to optimize blood donation supply chains. These ventures demonstrate Nigeria’s potential to lead in AI innovation—if funding gaps are addressed.
The financial landscape, however, is precarious. The report notes that 79% of startups face limited access to capital, with only 20% securing international funding and just 6% benefiting from government grants. Many founders rely on personal savings, making long-term survival uncertain. While fintech and digital banking show strong AI adoption, sectors like agriculture, healthcare, and manufacturing remain in early stages due to low funding and weak infrastructure.
Experts emphasize that human capital and community involvement will be critical to sustaining growth. Initiatives from grassroots tech communities to university programs are nurturing AI talent, but they often operate with minimal resources. To support this ecosystem, stakeholders recommend prioritizing AI education, creating national funding frameworks, and promoting indigenous knowledge systems, ensuring that Nigeria’s AI industry continues to grow inclusively and sustainably.
source: leadership