Nigeria has emerged as one of Africa’s fastest-growing artificial intelligence markets after the World Bank revealed that AI adoption among formal businesses has increased dramatically over the past three years. According to the World Development Report 2026, nearly 40% of Nigerian firms with at least five employees now use artificial intelligence, a remarkable leap from less than 5% in 2022. The rapid growth places Nigeria on par with the United States in terms of AI adoption among formal businesses, highlighting the country’s accelerating digital transformation.
The report noted that Nigeria and Kenya experienced one of the fastest rates of AI adoption between 2022 and 2025. However, the World Bank cautioned that the use of AI remains uneven across industries and businesses. Companies with stronger management structures, a history of innovation, higher productivity, and better access to markets are significantly more likely to integrate artificial intelligence into their daily operations than smaller or less-developed firms.
Beyond business efficiency, the World Bank believes AI could become a game-changer for developing economies like Nigeria. The report suggests that artificial intelligence has the potential to help countries achieve in just a decade what could otherwise take a century, provided governments invest in reliable electricity, internet connectivity, digital skills, and stronger institutions. Without these critical foundations, many countries risk missing out on the economic opportunities AI presents.
The report also highlighted the economic impact of AI adoption, noting that advanced economies are expected to enjoy greater productivity gains because they currently use AI more extensively. Under the most optimistic projections, AI could increase annual economic growth in advanced economies from 1.2% to 3.6%, while developing countries could see growth rise from 4.1% to 4.9% during the 2020s. The World Bank stressed that wider AI adoption across developing nations would significantly narrow this gap and unlock greater economic potential.
Speaking on the findings, World Bank Group Senior Vice President and Chief Economist Indermit Gill described artificial intelligence as a major opportunity for developing economies. He emphasized that countries like Nigeria do not need massive AI models or expensive data centers to benefit from the technology. Instead, affordable and locally adapted AI solutions can improve healthcare, education, agriculture, and public services for millions of people. Gill urged governments to act quickly, warning that AI is spreading faster than previous technological revolutions such as electricity and the internet, making early adoption essential for long-term economic competitiveness.
source: newtelegraph
