Nigeria’s ambition to become a competitive player in the global artificial intelligence market is facing structural challenges involving electricity supply, computing infrastructure, data governance and skilled labour.
The concerns emerged during discussions at Tech Outlook 2027 in Lagos on October 20, where technology stakeholders called for a stronger domestic technology ecosystem capable of supporting AI development and commercial deployment.
The experts argued that access to AI tools alone would not guarantee improved productivity or economic growth. Businesses must also invest in the infrastructure, skills and organisational changes required to integrate the technology into their core operations.
Infrastructure remains a major hurdle
AI systems depend on computing resources, reliable electricity, broadband connectivity and data infrastructure. Weaknesses in any of these areas can increase operating costs and limit the ability of local businesses to develop and deploy advanced applications.
Nigeria’s dependence on externally provided cloud platforms and computing resources has also raised questions about the country’s ability to retain economic value from AI-related activities.
Technology stakeholders have called for investment across the AI value chain, including data centres, cloud platforms, connectivity, computing capacity, locally relevant models and commercial applications.
The challenge extends beyond infrastructure. Businesses also need workers capable of implementing AI systems, assessing their performance and ensuring that the technology is used responsibly.
Businesses urged to move beyond experimentation
The discussions also highlighted the need for companies to measure the commercial benefits of AI adoption.
Rather than deploying AI tools simply to demonstrate innovation, organisations were encouraged to identify specific business problems the technology could solve, such as reducing processing time, improving customer service, strengthening fraud detection or automating repetitive tasks.
This approach could help companies establish whether their investments are delivering measurable returns through increased revenue, lower costs or improved operational efficiency.
The National Information Technology Development Agency, working with the SATH Foundation, is developing the Nigeria Tech Outlook to assess technology adoption and productivity across financial services, telecommunications, healthcare, commerce and government services.
The assessment could provide policymakers and investors with a clearer picture of where digital adoption is advancing and where infrastructure or regulatory gaps remain.
For Nigerian technology companies, the opportunity is significant, but sustained growth will depend on converting experimentation into dependable products and services that address real market needs.
